1 Publisher “Anonymous said:”, Belgrade

For Publisher Sandra Marković Milisavljević Anica Tucakov

Editor Prof. Gojko Rikalović, PhD

CIP - Каталогизација у публикацији Reviewers Народна библиотека Србије, Београд Prof. Stevan Devetaković, PhD 339.13:7(497-15)(082) Prof. Čedomir Ljubojević, PhD Prof. Slobodan Kotlica, PhD WESTERN Balkans : regional art market, and not a fiction? / [editor Gojko Proofreading Rikalović]. - Belgrade : Anonymous said, 2012 LARUS PREVODI Implementation of the project and book (Novi Sad : Artprint media). - 126 str. : publishing is financially supported by graf. prikazi, tabele ; 30 cm Translation the European Cultural Foundation, LARUS PREVODI Amsterdam. The opinions and views Prevod dela: Zapadni Balkan. - “...the result expressed in this collection are opinions of a work by participants on the project ‘Towards the art market in the Western Layout and design of the authors and do not necessarily Balkans’...” --> [predgovor]. - Tiraž 1.000. Dušan Zarić reflect the views of the European - Napomene i bibliografske reference uz Cultural Foundation. Copyrights tekst. - Bibliografija uz svaki rad. reserved to the authors. Transmission Number of copies: 1000 of texts from this collection is prohibited ISBN 978-86-87913-08-0 without the permission of authors. 1. Rikalović, Gojko [уредник] Print: Art Print Media Without the permission of authors is not a) Уметност - Тржиште - Балкан, западни - allowed to transfer, print and reproduct Зборници this publication. COBISS.SR-ID 193559052

2 Western Balkans: regional art market, and not a fiction?

3 4 Content

Professor Gojko Rikalović, PhD FOREWORD: A PLAIDOYER FOR REGIONAL ART MARKET ...... 7

Mikić Hristina, MSc, SFBC-Group for Creative Economy, Belgrade ECONOMIC PROFILE OF THE ART MARKET AND ITS CONTEMPORARY DEVELOPMENT TRENDS ...... 1 0 Hazim Begagić, MA, Academy of Drama Arts, University of Tuzla Hristina Mikić, MSc, SFBC Group for Creative Economy, Belgrade Mirjana Rikalo, MA, Higher School of Professional Business Studies, Novi Sad ART MARKET IN BOSNIA AND HERZEGOVINA: STATUS, PROBLEMS AND PERSPECTIVES ...... 27

Daniela Jelinčić, PhD, Ana Žuvela, MA, Institute for international relations, Zagreb ART MARKET IN CROATIA ...... 53

Anica Tucakov, MA, “Anonymous said:” Belgrade ...... 70 PRICE OF ARTS IN SERBIA

Ljuban Brković, SFBCounsultants, Belgrade Predrag Dikic, FBCounsultants, Belgrade LEGAL REGULATIONS OF ART WORKS SALES IN WESTERN BALKANS ...... 98

Dragan Demirović, PhD, Deloitte doo Serbia TAX POLICY OF WESTERN BALKANS COUNTRIES IN FUNCTION OF ART MARKET DEVELOPMENT AND THEIR EU ACCESSION ...... 106

Prof. Gojko Rikalović, PhD University of Belgrade, Faculty of Economics Hristina Mikić, MSc, SFBC-Group for Creative Economy, Belgrade Dejan Molnar, MSc, University of Belgrade, Faculty of Economics ECONOMIC DIMENSIONS OF ART MARKET IN WESTERN BALKANS AND ...... 116 RECOMMENDATIONS FOR IMPROVEMENT OF ITS DEVELOPMENT GLOSSARY OF TERMS AND CONCEPTS ...... 126

5 6 Prof. Gojko Rikalović, PhD University of Belgrade, Faculty of Economics PLAIDOYER FOR REGIONAL ART MARKET

Themed Book Western Balkans: regional The establishment of this common uncertain categories.2 Establishment developed art market, often under the art market, and not a fiction?, presents base would take place in accordance of economical value of art also concept of “art market” understand a the result of a work by participants on with European standards, but without experienced transformation, trying to primary reliance on market institutions the project “Towards the art market political influence on its formation and confirm art as a legitimate economic and those involved in economic in the Western Balkans” (financed by functioning mechanisms. The existence activity like any other, followed by dimensioning of art, with the state the European Cultural Foundation in of the regional art market could have non-economic effects of significant acting in the direction of market Amsterdam). It includes analysis of a positive impact on the stability of importance for society and individuals. failures replacement and construction options and potential effects of the the national cultural systems and In the economics of culture, scientific of efficient market structure. creation of a regional art market in the artistic development of more efficient debate about the economic valuation Western Balkans. The idea of ​​a joint art financing, in all the Western Balkan of art, started at the end of 1970s and This understanding of the market market on the territory of the Western countries. the first works of art market economists unfortunately does not feature a public Balkans is based on the assumption such as Andersen, RC (“ Paintings as an discourse of the Western Balkans, that this regional art market would In fact, in all times and societies, Investment “, 1974), Stain, J.P. (“The where the art market is approached include existing art markets in the works of art were the bearers of values ​​ Monetary Appreciation of Paintings,” in a laic and superficial manner, and area of ​​the region (Albania, Bosnia and recognized by a group that defined the 1977) and Baumol (“Unnatural Value:or reflection on the relationship between Herzegovina, Montenegro, Croatia, values ​​for the whole society, and same Art Investment as Floating Crap Game,” the artistic and economic values is Macedonia, Serbia), providing the works of art were also located at the 1986), questioned the economics rejected without solid arguments. possibility of inclusion (or expansion) highest level of economic valuation.1 of art market and made a significant Economics of culture on the other of the art market on other countries in Determination of the artistic and contribution to better understanding of hand, which is supposed to examine the wider environment of the region. economic value and the process of the relationship between the arts and this relationship from the scientific This joint art market could function evaluation are in some ways similar the market and its major determinants. perspective and to establish a basis as a supranational art market, with for cultural theorists and economists, for effective management of cultural basis on the current art markets of except that evaluation roots differ Specific features that characterize politics, has never been developed and each Member State, which will further between them. Until the cultural the art market speak of the fact that in established in the Western Balkans. operate independently of each other modernism the basis for determination practice it is never the sole mechanism with the adoption and application of of artistic value was seen in the internal, of decisions’ coordination, but that Themed Book Western Balkans: regional specific and unique binding standards. often universal qualities of aesthetic market economies are often combined art market, and not a fiction? fills an Creation of this regional art market and cultural significance, while instead in a greater or lesser extent with state essential gap in the research activities is a component of the integrational of the traditional ideals postmodernism interventionism. In the discourse of in this area so far, and provides a new process of the Western Balkans into brought interpretation of values in cultural policy, in particular those perspective, in the understading of the the EU (full membership in the EU). relativistic and often subjective and countries that have a long tradition and art market development, shifting it from

1Mulen, R. (1972) Umetnost i ekonomika u savremenim društvima, Kultura, br. 19/1972, p. 10. 2Connor, S. (1982) Theory and Cultural Value, Oxford: Blackwell, p. 14; Regan, S. Ed (1992) The Politics of Pleasure: Aestetics and Cultural Theory, Buckingham: Open University Press, p. 147.

7 the national onto regional net-working Works Art market in Bosnia and analysis and further improvement of D. Demirović, PhD, in his work Tax policy and the creation of common space not Herzegovina: state, problems and the instruments of cultural policies in of the Western Balkans countries in a only in terms of trade, but also in terms perspectives (Mr. Hazim Begačić, MA diverse areas of artistic creativity, but function of art market development of cooperation among artists, launching Hristina Mikić, Mirjana Rikalo, ma), Art also concrete recommendations in order and their accession to the EU offers a these research themes, strengthening market in Croatia (Daniela Jelinčić, to correct the current situation. Since comparative review and analysis of cultural public policies, etc. PhD, and Ana Žuvela, MA) and Price the majority of works created through policies’ tax instruments, trying to point of Arts in Serbia (Anica Tucakov, MA) a participatory process including the out to the possibilites that harmonization Economic profile of the art market in a systematic and comparable way opinions and views of as many relevant with EU legislation provides, and which and its contemporary development give an overview of strategic issues, artists (in consultation with artists’ many countries have not used in modeling trends by Hristina Mikić, MA, ana- but also of dilemmas in cultural policies associations or individuals), their prac- of their own art market. Approaching the lyzes relevant questions about the of the Western Balkans in three tical importance for understanding of concept of art from a tax perspective, the relationship between the arts and countries, trying to point out to the the current situation, and improvement author analyzes the common weaknesses economics in different socio-historical main weaknesses and potentials of the of decision-making process in culture, is with unsufficiently flexible definition of contexts and discourses of policy. The art markets in the region, through the evident. arts, which favors the traditional art form author analyzes the dynamics and structural analysis of its instruments to and is not open to the changes in artistic interdependence of markets in historical the theorists, academic researchers and The work Legislation of artworks expression, which is one of the important and comparative light reviewing practitioners. The special value of these transactions in the Western Balkans practical findings that may contribute discussions and contradictory attitudes works is that the analysis and synthesis by Lj. Brković and P. Dikić deals with to the adjustment of cultural policies’ of practitioners and theorists, as well as of findings, data systematization and issues of visual artworks trade, and all economic instruments for art market practical implications on cultural policy. cultural statistics go a step further, components vital for constitution of a development in the Western Balkans, Furthermore, principal divisions of the providing a very valuable statistical and legal transaction. This paper analyzes and also for improvement of its tax art market are presented, as well as its record material for further reflections on the legal framework for regulation of competitiveness. morphology, and different methods of this subject, and take practical actions visual artworks transactions in the economic evaluation of arts and their in the sphere of cultural policy. Sector Western Balkans, and on the ground of The paper Economic aspects of the sales (auctions, art dealers, galleries) analysis in the arts and culture is not a a comparison between them, make art market in the Western Balkans and analyzed. The last part is dedicated to strong point of cultural policies in the practical recommendations that can be recommendations for the improvement the contemporary development trends region, as well as its factual foundation given in the legal circumstances (lack of its development (G. Rikalović,PhD, H. in the art market and to the analysis of (evidence-based policy), and the more of institutional intermediaries, lack of Mikić, Msc and D. Molnar, Msc) analyzes structural changes that has taken place analytical significance of these works regulated market structure, etc.) that the main elements of cultural policies on it in the last 10 years. is as they provide decision makers can protect most efficiently the rights of and instruments that determine artistic methodological framework for strategic authors in the trade of works of visual arts. market and relate to it. By analyzing the

8 art market and the genesis of its position in public policy in the Western Balkans, relevant aspects of a complex art market position are offered. In this regard, the work provides several new routes and views on developments in the art market, shifting the focus from the national to the regional networking.

I am taking this opportunity to thank the European Cultural Foundation from the Amsterdam for supporting the realization of this project, because apart from its final outcome - the thematic collection of texts, which will help theorists and practitioners, both from the artistic and the commercial area to better understand the specifics of the art market in this area, the project “Towards the art market in the Western Balkans” (2012) has enabled opening of the space for a review of existing policies from the perspective of cultural disciplines such as economics of culture and the promotion and advocacy for the adequate position of this sector in public policy. Special thanks go to reviewers Prof Stevan Devetaković, Phd, Prof. Čedomir Ljubojević and Prof. Slobodan Kotlica, PhD.

Belgrade, July 2012.

9 Hristina Mikić, MSc, SFBC- Group for Creative Economy, Belgrade ECONOMIC PROFILE OF THE ART MARKET AND ITS CONTEMPORARY UDK: 330.1; 330.34; 338.46/111 DEVELOPMENT TRENDS

SUMMARY: 1.Art and economy

The paper analyzes relevant issues Over the centuries economic dimensioning public sphere and the appearance of the be fully and unambiguously defined. The of the relationship between the arts of arts has always been associated with state as major actor of the art market.1 economization of art always existed, but and economics in various social financial and political centers of power, Along with that, artistic creation as purely its content and significance was different and historical contexts and public desire to demonstrate the power and aesthetic category was networking regarding historical context. The positive policy discourses. Dynamics and significance of patrons, with an intention with a range of professional activities side of this relationship has cultural and interdependence between the arts and to capture their power in art historical (museums, galleries, art houses, etc.) social effects, especially when it means market are analyzed in a comparative- context. For example, the period of without which the protection, diffusion and that market can make accessible high art historic view through the review of Pericles’ rule in Athens was marked with promotion of art are practically impossible. from different parts of the world. On the discussions and contradictory attitudes the patronage of art, literature and science. Development of the art market is very other hand, works of art were treated as of practitioners and theorists, as well Patronage gave significant economic often associated with the sponsorship and economic goods (assets): Phidias statue as through the practical implications contribution to the development of arts funding of artistic creativity. The rulers and of Athena made of gold and ivory has on cultural policy. Furthermore, paper and culture, whose origins are associated aristocracy were motivated to confirm their been a wartime financial reserve, Rubens gives main classifications of the art with Gaius Cilnius Maecenas, who was privileged identity through the artwork; boasted that he is able to turn his canvases market as well as its morphology, and the adviser of the Emperor Augustus and church dignitaries wanted to secure the into bags of gold coins, etc.2, thus the analyzes different methods of economic patron of artists and poets. During the status of timeless institutions ordering economization of art through the market assessment of artworks and their sales Renaissance, under the patronage system, and financing artworks, while capitalist ensured the economic sustainability of an (auctions, art dealers, galleries). The artistic trends were defined by rich Italian relations stimulated the appearance of artist. last part of the paper is dedicated to families: Medici in Florence, Montefeltro professional traders as intermediaries the contemporary development trends in Urbino, Visconti and Sforza in Milan, between the artist and the audience. Throughout the history, it turned out that in the art market and the analysis of Gonzaga in Mantua, Este of Ferrara. Art in the value of artwork is usually created structural changes that have taken Europe at the beginning of the nineteenth Dynamics and interdependence of by consensus estimation of those who place in it in the last ten years. and twentieth century was developed markets and arts has always been the evaluate the artwork (curators, critics, art on the account of rich industrialists and scene of numerous discussions and historians, collectors, influential, national corporation owners who were patrons conflicting views, occupying for centuries stakeholders, wealthy individuals). Their Keywords: art economics, art market, of artists and art collectors (Paul Getty, the attention of theorists and practitioners value is therefore a subjective category trade, auctions, art dealers, art galleries George Saatchi, Bernard Arnault, Bill looking for an answer to the question of that through specific certification Gates, Steve Vin, David Geffen, Steve how to provide the freedom and economic systems becomes a socially acceptable Cohen and others), while the emergence of security for the artist, and in which value. It usually consists of those values​​ modern cultural policy, which began with way market development will avoid the constituted in the artistic sphere - the French Revolution, led to the relocation vulgarization of art. Relations between the aesthetic and historical value, rarity, of one part of art from the private into the market and arts are different and can never authenticity, social and symbolic value,

1See more: Mikić, H. (2011) Kulturna politka i savremeni izazovi finansiranja kulture: međunarodna iskustva i Srbija, Kultura 130, pp. 75-103. 2Mulen, R. (1972) Umetnost i ekonomika u savremenim društvima , Kultura, 19/1972, p. 15. 3Moulin, R. (1972) Umetnost i ekonomika u savremenim društvima , Kultura, 19/1972, p. 10.

10 and so on. Through a specific estimation Establishment of the artistic and economic (The Monetary Appreciation of Paintings, must be included in the process of market apparatus this value can be partially value and the process of evaluation are 1977) and Baumol (Unnatural Value: or exchange, thus obtaining a commodity objectified, but never completely, because in some ways similar, both for cultural Art Investment as Floating Crap Game, character.9 The complexity of the problem the desire to indulge into the aesthetic theorists and economists, except that 1986), resulted in better understanding of between the arts and the market and how experience, i.e. hedonistic determinant roots of evaluations are different between the relationship between the arts and the the Marxist school understood it, was of artwork’s economic value is its integral them. For example, until the cultural market and its determinants.7 reflected in several facts: that art is not component. Hedonic components of the modernism, the basis for artistic value was created to be a commodity, a commodity artwork’s economic value on the market are seen in the interior, often universal qualities The controversy, which still often marks must become in order to reach out the often determined by personal preferences of aesthetic and cultural significance, the discussion on the role and influence audience and fulfill its core function - towards a certain author, technique, size, while postmodernism brought relativistic, of the market in the economic market aesthetic effect, then, the artistic value is genres, motives, and the like, and in most often subjective and uncertain categories sizing of arts and culture, has its roots measured by the quality of its properties, cases show a significant positive impact instead of traditional ideals of value back in the 15th and 16th century with not by the amount of working time on the height of the artwork market price.3 interpretation.5 At the same time the foundation of the first Art Academy necessary for its production as it is with In this regard, the market value of the work determination of the economic value of arts in Florence (1562), and then in France, other commodities;10 work of art acquiring could be viewed as the sum of its value as an underwent processes of transformation. whose activities has built a new type of the character of goods is primarily viewed asset (how much is it worth as proprietary This area was an intense subject of artist. He is no longer a craftsman, but a from the perspective of its exchange value, equivalent), and hedonic components (as studies of cultural and sociological circles creator, for whom standard norms are not and ignores its utility value; dual nature of the owner subjectively assess its value from dominated by narrowed perception of art valid any more: image of an artist connects art work depends on whether it fertilizes the perspective of his or her pleasure, social market and observed from the perspective with aristocratic terms of art, which can the capital or not.11 Although in the early status, prestige, desire for possession, of “art commercialization dogma”, as not be reduced to anything else.8 Modern nineteenth century economic patterns etc.). Artistic and economic value, although often used to describe a way of thinking, ideas about the creator and creation, and have had a significant impact on artistic dependent on subjectivism, were never type of relationship and action in artistic their relation to the market, are established creativity, transforming work of art in the in the discrepancy, as this causality is creation, which is based on the logic of with Marx’s analysis of capitalistic marketable goods (auctions’ and galleries’ interpreted by theorists in certain circles. At trade.6 While in the economics of culture, production and treatment of arts in the sale of pictures, art fairs, artworks all times and societies, works of art were the scientific discussion on the economic commodity-money relations. According commissions), the ideology that art and bearers of values​​ recognized by a group that valuation of culture did not start until to that analysis, art is not primarily culture should be seen as an activity defines the values​​for the whole society, and the end of the 1970s, early works on art intended for the market exchange, but as outside the market, was present for a long the same works were also located at the market by economists such as Andersen an aesthetic experience for the recipient. time among the cultural theoreticians, highest level of the economic valuation.4 (Paintings as an Investment, 1974), Stein However, in order to reach the recipient it philosophers and sociologists, and this

4Ginsburgh V.A., Mei, J., Moses, M. (2006), The computation of price indices, in Ginsburgh, V.A., Throsby, D. (eds.), Handbook of the Art and Culture, North-Holland; Scorcu, E. A and Zanola, R. (2010) The right price for Art Collectibles: A quantile Hedonic Regression Investigation of Picasso Paintings, WP10-01, rcea Working Papers and Professional Report Series, Rimini: The Rimini Centre for Economic Analysis 5Connor, S. (1982) Theory and Cultural Value, Oxford: Blackwell, p 14; Regan, S. Ed (1992) The Politics of Pleasure: Aestetics and Cultural Theory, Buckingham: Open University Press, p. 147.

11 2. Economic characteristics, types and actors of the art market commitment has had an impact on certain rejected, even in those situations when The scope of functions of one work spatial nature (visual and applied arts) cultural policies. Ideas of non-profit and its adequate implementation led to of art necessarily depends on its and temporal arts (music, film, literature, non-market nature of artistic creation sustainability and better financial position, placement on the market. For a recipient theater).12 It is not uncommon, that the have been argued for a long time with the primarily of artists themselves. Today, to aesthetically experience the artwork, art market term is used when talking thesis that freedom of creative work is the public policy discours on the role of it should be made accessible. Market about the visual arts market. Up to the possible only if it is not a way for individuals the market in the economic market sizing allows through the intermediary role 19th century it was mainly comprised or groups to grow rich, and if it is beyond of arts, ranges from those by whom the the placement to the author, and of fine arts, but after that, due to the any financial reasoning. Development of market is providing flexible solution of satisfaction of cultural needs to the impact of technological development, capitalist relations of production, impact problems of allocation and distribution recipient / consumer. begins to be understood in very broad of the industrialization in the area of ​​ of resources, and timely adjustment terms, continuously extending the cultural and artistic activities, processes of cultural production according to Market of artworks is a customary boundaries and classification of art of deregulation in the public sphere, and individual preferences of private funders arrangement based on confrontation forms. The late 20th century art so on, influenced the continuity of negative (foundations, donors, corporations) and between the artworks supply and market includes various types of visual attitudes tradition in understanding of the users of cultural products / services (UK), demand as material embodiment of the expressions commonly nominated contemporary art market and, in a new to those policies in which the protection substantive outcomes of creativity and as the spatial arts like photography, conceptual framework, close linkage with of art as the public good often leads to imagination, originality, artistry and skills. installations, environmental settings, cultural imperialism, in which the role of the bureaucratization of the art system Besides this, the term art market can be video, technology and art display, a the market is seen as supportive for neo- and inaugurates through its excessive found in the foreign literature, which, wide specter of applied arts (comics, liberal ideas and values ​​that often upset administrative intervention logic of political depending on the historical dimension, illustration, design, etc.), and so it the social role of arts. Such uncritically subjectivism and voluntarism (Western social context in which interpretation is remained until today, although most taken positions on the negative treatment Balkans). taking place and the artistic tradition, turnover and market growth are noted of the art market have taken extreme marks the confrontation of supply and in the field of traditional art forms (fine variations in which art market has been demand for the works of art of the arts, graphics, drawings).

7“Cultural commercialization dogma” is influenced by the Marxist school of thought associating the field of culture and art events with the exchange value, which money causes in social life. It is considered that the universal exchange based on abstract work, which money makes possible, results in the increasing commercialization of arts and culture, as manifested in modern terms as kitsch. In this regard, kitsch as a result of growing capitalist relations is understood as the production of cultural-art products in which more care is given of the trade, then to the use value of these products. See: Ilic, M. (1987) Sociologija umetnosti I kulture , Belgrade: Naučna knjiga, pp. 62-65. 8Research on the art market ran into several phases: in the first stage main themes were in domain of understanding artworks as an investment, their investment capacities and the real earnings, up to considerations of the basic economic particularities of investments in the art market and the behavior of its stakeholders. Bolomow study from 1986 defined the second phase setting up the grounds for the economics of the art market. Further considerations ran in the direction of empirical verification of economic specificities of the art market in concrete cases, while the third phase of the research covered the art market passive testing of previous issues, narrowing the field of research and dealing with individual issues of the art market. See more: Frey B. (1997) Art Markets and Economics: Intruduction, Journal of Cultural Economics 2: 165-173. 9Moulin, R. (1972) Umetnosti i ekonomija u savremenim društvima , Kultura, 19/1972, p. 13. op.cit. 10Ranković, M. (1996) Opšta sociologija umetnosti, Belgrade: Zavod za udžbenike i nastavna sredstva, p. 219. 11Ibidem, , p. 219. 12See: Ilić, M. (1987) Sociologija umetnosti i kulture, Belgrade: Naučna knjiga, p. 62. 12 Exchange at the art market was The primary role of the market in the to disruption of the relations on the enjoyment of art among other things always taking place in some space and contemporary cultural policy is to be market, so that it can clearly state provide a range of social benefits such time. Space of the art market can be an instrument of decision coordination, the market dimensioning of particular as protection and fostering of cultural quite small as it is for example a local connected with the production and work of art. Allocative function of the diversity, strengthening of national and gallery or art fair, it can be national, dissemination, and enjoyment of art, art market makes it possible to make collective identity, improving of the such as national art fairs, auctions, and thus represents a mechanism of deployment of resources in an efficient general culture in society, protection or international (global auction sales, collection and allocation of funding and cost effective manner, and in doing and preservation of the cultural international art fairs). The spatial resources for arts. However, from an so to combine the economic and social heritage, ensuring continuity of culture dimension of market dynamics and art economic perspective, the market has criteria in the most appropriate way. and so on, therefore, all decisions works sales often influence the positive significantly more complex role in the Finally, the distribution function of the regarding the allocation and distribution effects of the market to increase arts and culture, and its role can be art market is reflected in the fact that of resources on the art market can primarily aesthetic communication seen through the four basic functions: the artistic quality is valued through the not be left to private aims, decisions of works of art in various parts of informative, selective, allocative and prism of economic logic by the market and motives. Existence of positive the world, while the development of redistributive. Informative market (along with other factors such as externalities is the most common information technologies intensify it. function provides a realistic picture supply and demand, government policy, argument favoring government support Creation of a global art market makes about the state of supply and demand competition) and thus determining its for the development of the art market it possible to expand the audience in the art market, through the price market price. Through the distribution and its regulations. It is obvious that of a work of art, and to provide more that aligns two main components function the exchange of works of the establishment of positive social stable and larger funds for investment of the market. The movement of art art for money directly or through values ​​(moral principles, socialization, in artistic creation. The global art market prices offers an insight to every intermediaries is performed, and thus tolerance, trust, acceptance of market supports the expansion of the participant in the general art market the connection between the artist and new ideas, collective and individual stakeholders circle involved in the about the general relation between the his or her audience established. motivation, habits and customs review of the aesthetic and artistic supply and demand, and its position system, etc.) is the common good criteria of evaluation, also improving the on the market and opportunities for On the other hand, there are some of every society. No one can adapt quality of institutions and international the placement. Selective role of the specific issues when it comes to the to a modern society, if one does not standards of art production.13 Art art market is reflected in the fact art market. For example, the fact that possess basic value patterns and the market achieves its positive effects that through the market mechanisms the exchange of works of art has not level of socialization and adaptation to improving artists’ working and living level of demand for certain work of only economic, but also a number of environmental conditions. Providing a conditions, institutional system of art art can realistically be qualified. The non-economic functions and effects, certain level of adjustment is generally education, and obtaining recognition selective function of the art market indicates the presence of (positive) good because interferences in it can for works of art. is particularly obvious when it comes externalities. The production and cause expenses for society (e.g.,

13So defined art market represents a broader concept, because it trades with art object as tangible assets and property derived equivalents of intangible nature - the rights of use and exploitation of works of art (publishing rights, the right of reproduction or duplication, etc.). 14See more: Ranković, M. (1996) Opšta sociologija umetnosti, Belgrade: Zavod za udžbenike i nastavna sredstva, pp. 225-226.

13 violence, mistrust, intolerance for undesirable, because it is often said as price and rarity, uniqueness and often the logic behind its inauguration of diversity, unadaptability of individuals that the art market is governed by the authenticity, appears marketing as political voluntarism and subjectivism. and social groups, etc.). In such cases, rule of thumb, that only 20% of offered a way to process information and For example, government purchases of the state is acting in the direction of works of art makes up to 80% of total exert influence on market trends.17 It works of art often leads to subjective reducing the costs of adjustment, and earnings.15 This confirms the fact, that is often said that the art market has pricing, favoring certain forms of art, with economic and administrative in 2011 1% of all lots sold at auctions characteristics of speculative markets, authors, formats, etc.. and therefore instruments allows the production of generated about 58.5% of the total particularly in the field of contemporary this instrument of cultural policy can art works of general interest, as well auction revenue.16 art, where leading galleries establish the be characterized as “bureaucratic as their protection and proper market territory and dominant tendencies and patronage” with far-reaching negative offer (e.g. purchase) and demand (e.g. Art market as well as any other, where regulations are achieved through consequences on the financial position art in public space). is characterized by asymmetry of the confrontation of major cultural and of the artist, than it would have under information, not only between market economic actors, appointing styles and certain market conditions.19 Excessive Another specific marks of the art participants, but also in relation to art introducing them to the theory, and also emphasis on the state coordination market is that it makes decisions on aficionados. Asymmetric information controling the offer.18 in the cultural policy often leads to the production and sales of artworks, occurs in the form of information to dysfunctional art market. It is the result developing and meeting specific different stakeholders involved in All these characteristics of the art of a large market inconsistency that needs, aesthetic experience and market transactions. In this specific market speak about the fact that it is occurs with dominating role of the communication, which means that situation, this means that customers never the sole mechanism of decisions state, as a major market actor on the supply of works of art always precedes and connoisseurs of art do not have coordination in the practice, and that demand side, and it occurs when the their demand. This situation brings with complete knowledge about the quality, imperfections of the market economy supply and demand are not aligned it great risks in terms of the market artistic, authentic, aesthetic and are often eliminated by the state or when their discrepancy is such behavior, as it requires to predict all economic value of the work (especially intervention. The role of the state in that it leads to a situation where the trends regarding the interest and taste when it comes to contemporary art). the cultural policy is ranging between price can not be regulated by market of market participants, that is more The issue of asymmetric information extreme situations, in which the state conditions. This is usually the situation difficult by the fact that one and the is even more pronounced because it is the only mechanism of coordination when quasi-regulatory instruments same work of art can be perceived is impossible to measure accurately influencing the art market (statist model create demand for certain artworks, in different terms, and can produce not only aesthetic and creative value of cultural policy), to situations in which which in the absence of administrative different effects on the audience.14 It is of a work of art, but also its economic the government only compensates measures would not exist. It may quite possible that authors and styles value as well. More complex function for market failures (market-oriented occur for example when customers today very popular and in demand, of the art market means that besides model of cultural policy). Excessive are not interested in buying works of can be obsolete tomorrow, and even the instruments of competition such government’s role in the sphere of art is art regardless of the offered price, or

15See more: Adižes, I. (2008) Menadžment za kulturu, Beograd: ASSE DOO; Jovičić, S. and Mikić, H. (2006) Creadive industries in Serbia: reccommendations for the development of creative industries, Belgrade: British Council. 16See more: Jovičić, S. and Mikić, H. (2006) Creative industries in Serbia: reccommendations for development of creative industres, Belgrade: British Council. 17Ehermann, Th. Ed (2011) Art market trends 2011, Domaine del la Source: Artprice.com S.A. p. 22.

14 when the owners of art works (authors, Finally the allocative function of the state, per 1.000 population (the Netherlands, where institutional actors of art market are collectors, other stakeholders on the art corrects or compensates the art market Norway, Denmark). It is noticeable that the clearly defined (gallery system, foundations, market) do not want to sell works at any functioning with administrative (compulsory intensity of investment in visual arts system art studios, art fairs, etc.). In this way greatest price. Therefore, countries with a long purchase, art in public space) and economic primarily depends on the development and development achievements are reached tradition and developed art markets, often instruments (subsidies, grants, tax breaks). dynamics of the contemporary art market - state at the same time dimensioning under the “art market” concept understand a with sales of uncategorized works of art, professional-market conditions and fosters primary reliance on market institutions and There are significant differences between where its funding is mainly done in a way creativity, innovation, new ideas, forms and those involved in economic dimensioning of some European countries in the intensity that encourages the primary art market, and contemporary artistic tendencies. arts, with the state acting in the direction of of their allocative function, which is market failures correction and construction usually interpreted by the level of financial of a more efficient market structure. This is resources to be diverted to finance the art one of the specific functions of the state, to market, particularly the system of visual Table 1: Visual act in the direction of the market regulation arts. arts funding in some European settings, institutionalizing norms of general countries rules on conduct on the market (estimates Different groups of countries can be of works of art, expertise, establishing identified in relation to the financial authorized estimators, protection of criteria: states with low financial capacity, cultural heritage, the right of preemption, diverting up to 2.000 euros per 1.000 classification of works of art, etc.). Of population in the visual arts market (Serbia, no less importance is the redistributive Greece, Lithuania, Latvia, Macedonia), function of the government, acting through states with art market of the medium the fiscal system towards a more equitable financial capacity interval from 2.000 to distribution of resources in situations where 10.000 euros (Austria, Belgium, Czech it can not be fully dimensioned by market Republic, Germany) and at the end states *estimation ** estimation based on data concerning the funding of art galleries, cultural centers and mechanism (lighter treatment of artists’ with art market where financial capacity art centers income taxation, social charges, etc.). is exceeding 30.000 euros per year Note: calculation by the author21

18It allows promotion of certain styles, artists, forms, art styles, including cooperation with subjects that can influence the public, on the first place multipliers of the public opinion (critics, public figures, journalists, relevatn historians, curators, museums, collectors etc.) 19Mulen, R. (2001) Umjetnost i tržište: modijalizacija i nove tehnologije , Belgrade: Clio, p. 21. 20See more: Ranković, M. (1996) Opšta sociologija umetnosti, Beograd: Zavod za udžbenike i nastavna sredstva; Ranković, M. (1974) Kultura i nekultura, Beograd: Vuk Karadžić. 21 Calculation by the author on the basis of Council of Europe/ERICarts sources, “Compendium of Cultural Policies and Trends in Europe, 13th edition”, 2012, http://www.culturalpolicies.net (downloaded on 26. 06. 2012); Statistics Finland http://www.stat.fi/til/klt/tau_en.html (accessed on 26. 06. 2012); Statistics Norway http://www.ssb.no/english/yearbook/emne07.html (accessed on 26. 06. 2012), Sta- tistics Netherland, Statistical Yearbook 2010 http://www.cbs.nl/NR/rdonlyres/CBFF2453-C370-4E7A-9271 0020DC62DC4E/0/2010a3pub.pdf (access 26. 06. 2012), Statistics Austria http://www. statistik.at/web_en/statistics/education_culture/culture/index.html (access 26. 06. 2012), Statistics Poland, Statistical Yearbook 2011, http://www.stat.gov.pl/cps/rde/xbcr/gus/PUBL_sy_statitical_year- book_of_the_rep_of_poland_2011.pdf (access 26. 06. 2012), Statistics Macedonia, Statistical year book 2011 http://www.stat.gov.mk/PrikaziPublikacija_1_en.aspx?rbr=246 (access 26. 06 2012); Mikić, H. (2011)Kulturna politika i savremeni izazovi finansiranja kulture: međunarodna iskustva i Srbija, Kultura 130, pp: 75-103.

15 2.1. Classification and morphology of the art market

Art market can be observed from market is usually segmented highly unstable, often divided Given the dominant nature of market different aspects, and in that sense to: Old Masters market and into many sub segments. relations, the art market can be divided to influence various classifications. Contemporary art market ∗ National art market refers into: Although the art market is very complex (works created between 1874 to the geographical area of ​​a ∗ Monopolistic art market is a concept determined by all relevant and 1943). country and includes artworks market structure in which one elements that form the content of the sales on the territory of that seller of artworks makes offers supply and demand, the character of ∗ Art market of contemporary State. to a large number of buyers, and these elements usually determines the art is constituted around ∗ International (global) art the word itself comes from the type of the market. the sale of the living artists market includes the area where Latin word “mono” – one, and a with multiple orientations international trade of artworks Considering the exchange role, the “polist” - seller. Monopolist has (installations, multimedia, etc.). is taking place. Its origins market of art works can be divided the market power. He or she as This market is characterized are often associated with into:21 the owner of artworks that are by instability and diversity of the international promotion unique and with no substitutes, supply, extreme fluctuations in that relies on a network of ∗ Art market of categorized determines the price offered on supply and demand for certain international galleries and art works presents a market the market. Since monopolistic works of art. cultural institutions (museums, selling old and modern works market favors sellers, because international events, art fairs, of art that have been classified they have exclusive control Given the spatial component or space etc.).22 as a historical heritage. Trade over works of art, including where exchange is taking place art is handled with extremely a strong power of influence market can be: In addition to these divisions, we can heterogeneous works, on consumers’ taste and ∗ Local art market mostly talk about the regional art markets, characterized by rarity and preferences, there are often covers the area of ​​exchange which are comprised of more local or historical value. The market situations in which even in those determined by local traditions, geographically related national markets is stable, and the offer is segments of the art market, art movements, or artists. in a way that their economic, cultural, limited and unique. These which by their nature should Local markets are very diverse, artistic criteria can be classified as facts imply that this market is not be monopolistic, sellers include only markets with whole (e.g. Asian art market, EU market monopolistic in character, or try to establish a monopolistic works of contemporary art of artworks). allows the owner of categorized market structures. This that are not categorized; in art to have a monopolistic happens because they allow constant development and position. Categorized art realization of extra profits to

22Mulen, R. (2001) Umjetnost i tržište: modijalizacija i nove tehnologije, Beograd: Clio, pp. 15-21. 23Ehermann, Th. Ed (2011) Art market trends 2011, Domaine del la Source: Artprice.com S.A, str. 8; European Commission (1999) Report from the Commission to the Council on the Examination of the impact of the relevant provisions of the Council Direktive 94/5/EC on the competitiveness of the Communitiy Art Market compared to the third countrie’s Art Market, COM (1999)185 final, Brussels: Com- mission of the European Communities, p. 4.

16 the monopolist. For example, Art market of the auction the emerging artists, where the of modern art, with a plan to on the contemporary art market sales has been for a long time offer is very heterogeneous, promote them on the global mega collectors in collaboration duopolistic, where two auction dynamic and interchangeable. market as culturally and with galleries contribute to houses Sotheby’s (founded As works of art in this market economically relevant. determination of the economic 1744) and Christie’s (founded haven’t experienced their social and social value of artists 1766) had control of almost and economic confirmation, Given the nature of sales, the art market and their works, buying large 70% of the artworks offer artists are in the competitive can be divided into: number of works at very low for auction trade.24 Today it position among each other, ∗ Primary art market is that in prices, in order to control the takes the form of a cartel with because they are competing which original works of art are offer. Narrowing the supply several global auction houses for their works to be confirmed sold for the first time. Typical always means to increase like Sotheby’s, Christie’s25 Poly and recognized in the future for this market is that the price the price, and with different International, China Guardian as relevant on the art market. does not reflect the result strategies that build artists’ Auction, Phillips de Pury & In doing so, gallery owners of supply and demand, but reputation (e.g. inclusion in Company, Beijing Hanhai and art dealers are providing negotiating power of buyers a museum collection, a large Art Auction, Beijing Council them assistance, selecting and sellers. The most common collection, funds, etc.) market International Auction, Shanghai artists and certain forms case is that art dealers are segmentation between top Tianheng Auction, Ravenel from heterogeneous supply familiar with market trends, artists and the rest of the Art Group that have dominant market is taking place. In this position in the auction artworks way, the owner of artworks trade, indicated by the turnover becomes a monopolist, who of the biggest auction houses in Table 2: Major auction houses and their enjoys all effects of extra 2010 as shown in Table 2. turnover in 2010 (in euros) profit that can be achieved 23 Source: Conseil des ventes volontaires, by selling these works. ∗ Competitive market is the (2011) Public sales in France, Paris: market structure with large Conseil des ventes volontaires, p. 75. ∗ Oligopolistic art market is number of buyers and sellers. market structure in which there Competitive market as a form are several vendors who control of market structure in the arts most of the artworks supply. appears only on the markets of

24The subject of the trade are categorized artworks, contemporary art and the right on reproduction. 25See more: Moulin, R. (2001) Umjetnost i tržište: modijalizacija i nove tehnologije, Beograd: Clio, str.20-23. 26Ehermann, Th. Ed (2011) Art market trends 2011, Domaine del la Source: Artprice.com S.A, str. 8; European Commission (1999) Report from the Commission to the Council on the Examination of the impact of the relevant provisions of the Council Direktive 94/5/EC on the competitiveness of the Communitiy Art Market compared to the third countrie’s Art Market, COM (1999)185 final, Brussels: Com- mission of the European Communities, p. 4. 27These two auction houses participated in 47% of the auction sales total revenue in 2011. Ehermann, Th. Ed (2011) Art market trends 2011, Domaine del la Source: Artprice.com S.A, p. 8, 17 2.2. Economic valuation of art works and their sale

ensuring in negotiations with The ownership of works of art has Direct method of artwork price access to negotiations which will enable the author price on the primary always been driven by property and determination is based on the even greater difference between the market 50% lower than it can possession, and hedonistic motives. negotiating power of the artist and purchase and sales price of art. be achieved on the secondary Buyers of artworks can be motivated the buyer. It contains elements of art market, especially for to purchase certain work of art for its direct negotiations, where the price is Indirect method of artwork price emerging artists.26 Its main sensory experience, or driven by the determined by subjective assessment determination is applied when the actors in the field of visual arts reputation and prestige that possession of the author/owner what price his or price of art is determined by the party are art studios, art dealers, of these works brings, accumulating her work can achieve on the market. informed on the nature of the deal with fairs and festivals, galleries and material goods, for investment motives Depending on the estimation of the facts necessary to determine the price similar showrooms … and profit obtained from the resale of time needed for the production of of art. Usually the assessment of the ∗ Secondary art market is works of art. the work, talent and expressive form, artwork price is performed by curators, constituted around the resale curators, gallery owners and critics Categories of works traded on the art art historians and experts for the of works of art that have deny or confirm the reputation of a market are: works of art, collectors’ market value assessment (on markets appeared on the primary particular artist and in doing so define pieces and antiques and their price is with established standards of conduct market. Information on prices the cultural offerings, and thus the determined with different methods.27 As for this profession). Price is determined and artists are well known in movement of prices in the future. expected the artwork price is very hard to on the basis of market trends, demand this market and the purchase of Direct method is the most common determine on the basis of the economic for the works, formats and production works of art is much less risky method determining the prices of apparatus such as, for example, the techniques, its innovative character, compared to purchase in the commissioned works of art, where the cost (the cost of production) increased size of the offer, etc. primary market, as authors are author on basis of his or her subjective for certain percentage of profit as well-known, and economic and criteria (necessary processing time, usual for the economy, so we have to Administrative method of artwork price social value of their work is more complexity of forms and techniques, determine the price combining different determination presents arbitrary model or less confirmed in the market. number of commissioned works, methods. Basic methods for artworks and it is applied in two cases: 1) when complexity of the creative process, price determination are Direct method, relevant market players do not accept subjective perception of the value Indirect method, Administrative method as accurate data for price determination of their reputation and name, etc.) and Method of Parification, depending and then apply expertise 2) in the case determines the price of artwork. This on the work of art, who are actors of the of artworks purchase by the state, in an method is applied even in the primary sales transaction, whether the sale is underdeveloped art market. In the first market, especially for the purchase of performed on the primary or secondary case, this method is applicable in the works by emerging artists and younger art market, and so on. case when an error occurs regarding generation of artists, where art dealers

28See more: Helburn, J. and Ch. Gray (2004) The Economics of Arts and Culture, Cambridge: Cambridge University Press, p. 170. 29Art market now participates with over 85% of the total annual traffic

18 the subject of the trade on the same level as the price determined by minimum and maximum price that work auction by the seller, which allows the categorized art market, with certain the direct method, but without direct can achieve in a free market.29 seller to accept an offer that was the attributes credited to a particular work negotiations, and may be lower than it, highest in the auction, usually slightly of art (usually a period of creation and if it is assessed that some work of art Auction sale of works of art has certain lower than expectated. The practice of authorship) that it does not possess, is important for the purchase, but there characteristics when it comes to the auction houses is to provide guaranteed while those attributes primarily are no funds available for the purchase. sales process and determination of prices that may encourage retailers determine its price. For example, the prices. Auction houses for their clients to maintain high prices for exclusive old painting market often includes Method of Parification is the perform evaluation of the artwork copies of works of art. For example, the works that are not dated or signed, and most common method for price value before the auction sale, through auction house may guarantee payment whose identification presents a long determination especially for auction estimation of the fair market value (the of the reserve price to the seller, process. False attribution of authorship sales, but also in cases with the lack of value which the auction house believes regardless of whether the highest bid does not affect the aesthetic value of facts and data for artwork pricing, or if can be achieved at the auction) and at the auction will reach its amount. work, but it affects the assessment of the mediator believes that submitted the insured value (the value that was The process works so that in the case its place in art history, and therefore information on which the value of the estimated for the insurance needs of a price greater than the reserve one its price. Revisions of great masters’ artwork was estimated is not relevant in the case of the destruction, theft, (which is guaranteed by the auction catalogs show an increasing number and credible. Then one proceeds with damage, etc.). Depending on wishes of house) generated income is distributed of works attributed to their pupils, the comparison of the prices that the seller, a work of art can be sold with between the auction house and the causing large fluctuations of prices similar works achieved in the market free bidding, where potential buyers seller in proportion 30:70%.30 for these works of art.28 In the second under similar circumstances (format, are bidding and every bid is typically case, the administrative method is author, production time, techniques, 10% higher than the previous one, or Auction houses are main players for applied for the assessment of art etc.) and based on that determines may require the sale on the so-called sale on the secondary market, and works in undeveloped markets, with approximately the same price as the reserve price or minimum selling price price is formed so as to ensure to the no categorization of artworks or selling price for the same or similar set before the auction sale, while giving auction house commission on average professional standards of assessment, category of art works. This method is instructions for the sale to the auction of about 20% of artwork’s sale price.31 nor relevant and authorized persons mostly applied in the secondary art house. Reserve price may be fixed or This fee is charged to the seller, to perform them. It is often applied for market, but on the categorized art discretionary. Fixed reserve prices are subtracting from the sales price. At the purchase of works of art, when the market too, with constant revisions of indicated in the absolute amount in the the auction, extra costs that increase Commission determines the purchasing the artworks values. Based on historical auction house before the sale, and if the cost of the artwork are costs of price, and depends on the available data on the movement of similar works, the auction does not reach it, the work “premiums” charged by the auction financial framework for this purpose. this method offers the possibility to remains unsold. Discretionary reserve house to the buyers, which are used to Such a price can be determined on the roughly estimate the interval of the price is not stated explicitly before the cover administrative costs. Premiums

30See more: Mulen, R. (2001) Umjetnost i tržište: modijalizacija i nove tehnologije, Beograd: Clio, pp. 11-17. 31In regulated markets historical data on artworks prices tendencies, as well as estimates of the minimum and maximum values achieved publicly are available through the portal for art trade, as well as by the auction houses, professional associations (eg Association of Appraisers of works of art). Underdeveloped markets are characterized with the lack of transparency of art works prices, and it is often difficult to obtain system- atized and long-term data on the movement of prices of various works of art. 19 charged to customers (buyer’s premium) owner whether he or she will mark forms of auction where bids are sealed art market. Until then, the gallery are introduced in the auction during the the ownership in the catalog. For this in secrecy, although they are rarely as relevant art market stakeholder 1970s. At the famous auction houses purpose, leading auction houses for applied in the case of auction sales of participates in the sale of an artwork like Christie’s and Sotheby’s they are proprietary notices use the phrase artworks. An integral part of auction from the primary market, selling ranging from 10% to 35% depending “owned by distinguished European sales are pre-sales and auction items works of contemporary art (usually on the value of art and auction rooms, collector’’ if they do not release specific tours, organized one day before the from living artists). Depending on the where the sale is taking place.32 A part identification of the owner. In contrast, auction. Licensed appraisers and category to which the gallery belongs from this, with living artists, buyer is the history of the art’s provenance or art dealers usually attend them, (the leading international gallery-leader obliged to cover the costs of droit de documentation that testifies about providing potential customers with or gallery of a lower level), manner of suite, paid on the behalf of the author its trade and previous owners in the detailed information about the work. trade transactions will be determined. or his/her successors for each resale continuity from the first to the last Each auction has a number of unique Leading international galleries (leaders) of the work of in the scale of 0.25% transfer of ownership, represents an identification. The letter, standing in are galleries of well-known art dealers - 4% of the selling price, if the value important determinant of the price. the catalog in front the auction sale, that are promoting through various of work exceeds 1.000 euros. The Significant for the auctions sales is the signifies the room where sale is taking communication channels artists whose amount of allowances that are charged fact that art objects are sold as the so- place (L-London, N-New York, etc.). works should be established as relevant by the droit de suite can not be higher called “lots” numerically marked, that Currently, sales are taking place in on the market. Leading galleries of this than 12.500 euros, and if the value of may include one or more objects of major auction houses, and several type are usually engaged in discovering work exceeds 2 million euros.33 So, in art. Auction itself has a form based on major auction rooms: New York, Paris, of talents and their market evaluation at relation to cost of sales, administrative an English auction, which implies that Dubai, London, Hong Kong, Beijing, an earlier stage of their career (emerging and handling charges vary from 35% to the work is now offered at a minimal Amsterdam, Milan, Geneva, Zurich, artist), and with various communication 60% of sales price. price, and buyers are bidding towards Toronto, and Doha. techniques influence the demand, the growing cost. Price is usually introducing cultural values ​​for which At the beginning of the 1970s art works increased by 10% from the previously Sales of artworks by galleries are still have to determine the price. Some prices were published for the first time offered price. Auction items are offered somewhat different. With galleries’ of the leading contemporary galleries in catalogs and names of buyers were “as is” with no hidden defects.35 Most sales new artists, trends and styles are Malingue Gallery (Paris and Hong removed from the list of past auction auctions taking place on the art market are promoted. Sales through galleries Kong), 36 Artprice (Lion),37 Emmanuel sales and sellers from the catalogs.34 have a transparent form of sale, given mostly create the market’s future, Perrotin (Paris),38 White Cube It is a common rule nowadays that that auction offers and bids are publicly which will one day become the object (London),39 Matthew Marks Gallery,40 discretion right allows the artwork’s announced. However, there are some of the auction sale on the categorized Gagosian,41 Pace Gallery (New York -

32See more: Godwinn, J. ed (2008) The international art markets: the essential guide for collectors and investitors, London: Kogan Page, p. 26. 33See more: Helburn, J. and Ch. Gray (2004) The Economics of Arts and Culture, Cambridge: Cambridge University Press, p. 172. 34See more: Sotheby’s buyers premium list http://www.sothebys.com/content/dam/sothebys/PDFs/BuyersPremium2012.pdf (access, 15.06.2012) 35Standards that apply to members of the European Union. See more: Europeann Commission (2001) Directive on the resale right for the benefit of the author of an original work of art (2001/84/EC), Brus- sels: European Commission 36See more: Godwinn, J. ed (2008) The international art markets: the essential guide for collectors and investitors, London: Kogan Page. 20 Beijing),42 Contrast Gallery (Hong Kong at a price which is in the range of the galleries operating in underdeveloped conduct their work as principals, they and Shanghai), etc. interval specified in the commission, markets artworks offer is diversified trade in their own name and for their and allows it to adjust the sales price with no clear criteria of selection of account, which means that they have The system of art sale galleries is to market conditions, but in doing so to artists that will be presented in the to take the business risk. In this way based on several principles of sales. conscientiously protect the interests gallery. galleries assess market potential of Commission sales present one of them, of the client. Finally, optional price artists buying their works and creating where gallery acts as commissioner includes a series of non-binding, but Leading international galleries (leaders) their own portfolio. Galleries of this who performs the sale on the name indicative advices from which the act differently in the system of art type, as well as art dealers operate in of the gallery, but for someone else. commissioner may waive, providing sale galleries. Since their founders are such a manner that often leads towards Owners of the artwork or authors that conscientiously protects the art dealers, their operations largely the stabilization of the art market. find themselves in the role of a client interests of the client. This form of reflect only institutionalized process Namely, their logic comes to light when who bears the potential business risk. mediation between artists and market of paintings sales, immanent to selling artworks if their last sale price Gallery as a commission agent, charges is used by most galleries dedicated independent art dealers. Once leading was rising, and buy artworks if their commission fee from the selling price. to traditional fine arts, which in their vendors in the primary market were last sale price starts to decline. They Price for commission sale may be of business philosophy do not take the art dealers, individuals working for are trying to keep the work less time imperative, indicative, and optional risk that accompanies innovation. The themselves and for their own account, in the trade, because it increases its character. Imperative price is price choice of artists is mainly performed in buying or financing artists and then price and are ready even to purchase at which commissioner has to sell a accordance with market expectations placing them on the market. This model it from collectors and to keep it longer work of art. Indicative price binds a and purchasing power of clients in case now exists mainly in an institutional in their portfolio, and then to sell it commissioner to sell a work of art of established art galleries, or in case of form. Art dealer and leading galleries with appropriate market conditions. 43

37At the auction by the English auction method buyers are bidding, while the auctioneer follows the auction, announcing the current highest bid. Bidding lasts until the moment when the highest price has no competition. Then the auctioneer signifies three times the highest bid, and if during that period higher price is not offered, announces final offer by which the work is sold. Prior to the sales announcement, the auctioneer gives an auction warning announcing the last chance to increase the bid, which verbally expresses raising the hammer into the air. If no serious offers are made, auctioneer’s hammer falls and the auction ends with the exlaimation “sold”, confirming the number of the byuer. If the work offered at the auction does not have any bids, auction’s end occurs when the auctioneer exlaims “next”, meaning that it moves to a new auction lot. Buyers have paddles with the numbers received while registering for the auction. If they win the auction, the number from the paddle will be recorded so that it becomes necessary evidence attached upon the payment of the purchased items. 38Gallery founded by art dealer Daniel Malingue in th 1960s with a goal to promote modern and contemporary art, trade with categorized artworks and works of contemporary art by acclaimed living artists. 39Artprice is a company engaged in e-selling works of art, and at the same time is a leading organization engaged in research and following of market trends. Today it represents the largest electronic portal where auction lots are listed, with very competitive fees that range from 5-9%. See more: Ehermann, Th. Ed (2011) Art Market Trends 2011, Domaine de la Source: Artprice.com S.A. 40Emanuell Perrotin is today’s most famous art dealer of modern art in the world. His gallery was founded in 1993, first in Paris and then in Milan and Hong Kong. Success of the gallery was achieved discov- ering talents at the beginning of their careers, and with the successful communication strategies, managing to place them on the biggest art fairs like Art Basel, TEFAF fair in Maastricht, the Aar Show and others. See more: http://www.perrotin.com/artiste.php 41http://whitecube.com 42http://www.matthewmarks.com 43http://www.gagosian.com 44http://thepacegallery.com

21 3. Contemporary development trends in the art market

In trade relations, implemented in the Art market as we know today began to Duran), art dealers of the 19th century Today’s market of artworks constitute primary market, negotiation process develop in the late Renaissance, with at the same time were developing main protagonists: auction houses, art of pricing always takes place in the a predecessor specialized in trade. the audience, disseminating works of dealers, gallery system, art fairs, shops, direction so that leading gallery or art First data on art works sales in the art, advocating new tendencies and museums, individuals and corporate dealer are allowed 50% lower price primary market dates from the 15th recognizing their artistic, fashionable collectors. Estimates are that on the than the price that may be achieved century on the territory of Florence and economic potential (e.g., Paul supply-side operates about 400.000 through the gallery art sale placement and Bruges, while the secondary Duran and French impressionists). participants (auction houses, dealers, in the market. Characteristic for this market with specialized art dealers galleries, showrooms) employing about kind of intermediation and sale is the (resellers) occurred with a delay of At the same time, increasingly frequent 2 million employees, of which the intense policy of placement. It enables 50 or more years, so the first data auction sales occur at the beginning European market, being the oldest, the artist in the early stages of its on this type of market dates from the in taverns and restaurants. The first has more than 79,000 participants.46 career to promote his or her work on early 17th century in Amsterdam, late auction sales of art as we know today, Distribution of revenues between the the most significant exhibitions, art 17th century in London and first half took place in 1741, offering works of auction and art dealer sales amounts fairs, museum collections and funds, of the 18th century in Paris.45 In the art from Edward Harley art collections, up to 49% towards 51%, out of thus influencing economic evaluation early 19th century mostly art dealers who was British politician and patron which inside the art dealer sales art on the higher level. Estimates are worked, channeling the interest of of the arts. A decisive example in the fairs’ sales participate with 31% and that on today’s art market are active customers for certain styles, defining development of arts auctions was in fine arts with 43% and electronic around 6.500 art dealers who operate taste, artistic trends, promoting 1754 when items from the collection sales with approximately 10%.47 It is on a global scale, and about 35.000 specific artists on art fairs, but often of the famous physician Richard Mead interesting to note that art dealer sales galleries, where the top 5% have 70% providing source of revenue for artists were sold for nearly 16.000 pounds, an during the 1990s accounted for 26% of the annual revenue from artworks with down payments, acquisitions and unusually high price for the collectors’ on the EU market and 18% in the U.S. sales.44 purchases. First contemporary art pieces and works of art. Opposite to market, and that during this period an dealers like Paul Duran Riel, Amroay the sales that were performed in this average increase in dealership sales is Volara, Georges Petit and Daniel Henry way, intense and organized system noted from 17% per a year, speaking Kanvajiera affected the art market as for sales through auctions had its full about one of the most important entrepreneurs, often buying works development since 1913. structural changes in the art market.48 before their production and taking Tendencies towards more dealers’ sales the risk of their placement. Promoting are accompanied with the increasing the art through galleries’ exhibition importance of contemporary art in programs (e.g. Petit Gallery, Gallery commercial transactions.

45Godwinn, J. ed (2008) The international art markets: the essential guide for collectors and investitors, London: Kogan Page. 46Mc Andrew, C. (2010) The international Art Market 2007-2009. Broekwal: TEFAF-European Fine Art Foundation; Corbett, R. (2012) Art Market Watch: How Big is the global art market? http://www. artnet.com/magazineus/news/artnetnews/china-the-worlds-top-art-and-antique market.asp (access 15.07.2012) 47See more: De Marchi, N. AND Van Miegroet, H. (2006) History of Art Markets, u: Ginsburgh, V. and Throsby, D. eds (2006) Handbook of the Economics of Art and Culture, Volume 1, Amsterdam: Elsevier. pp. 72-73. 22 An insight into the development trends the economic growth, employment and The demand for works of art is formed Magazine, etc.). Primary motives of of the art market are provided by facts international trade, but also because through the confrontation of interest corporate collectors 10 years ago about its geographical segmentation it encourages the development of new between individual and corporate were guided with the wish to decorate according to which in 2010 EU careers in the arts, improving skills and collectors, museums and cultural working environment, while investment market accounted for 37% (6% with ongoing professionalization, intensifies institutions. British banks introduced in arts today is seen as part of general France, Great Britain with 22%), the diffusion of art and promotes the the tradition of corporate collections corporative image, as a reason why USA with 34%, China for 23% and arts. in contemporary art market, with corporations as buyers are very other countries for about 6%, with a practice to equip their office and selective with clear requirements.� the most significant trend expressed According to many analysts, most working space with art works, so that Creation of a collection is guided with in the growth of the Asian art market, important segment of the art market largest corporative collections date an idea to acquire certain group of especially China in the last 6 years.49 is a market of artworks and collections from the early 20th century (IBM, artists who belong to the same art style The entire art market (works of art, with share of about 50% of the total Microsoft, Daimler, Cartier, Forbes (so-called vertical collections) or with an collectors’ pieces and antique objects) annual turnover (22.1 billion euros in in the last 10 years recorded a growth 2010), and a growing rate of about Graphic 1: Trends in the value of about 5.4% with an average of about 15% per year. Market of artworks and of art market (works of art, 35 billion euros a year (see graph 1) and collections is segmented by the period of collectors’ pieces and antiques), 2002-2009 value of about 43,1 billion of euros in production and art styles (Old Masters, 2010.50 If we exclude from the analysis 19th century and Impressionist, http://artmarketmonitor. com/2010/03/02/tefaf-art- 2009, with a decline of the overall value Postwar and Modern art, Contemporary market-report-art-economics/ of 33%, which represents the largest art) and medium (paintings, drawings, (accessed on: June 2012) decrease since the crisis in the 1990s, sculptures, graphics, photos). Postwar its average growth rate is significantly and Modern art has the largest share higher and the level of about 10% on by the period of creation, however an average annually. In developmental increase of sales of Contemporary art terms, global art market is significant is visible in the last 10 years, achieving not only because of its contribution to average annual growth rate of 26.6%.51 transactions value, milions (euro)

48From the overall number of actors active on EU art market estimates are that are 4.000 auction houses, 55.000 art dealers and about 20.000 galleries. See more: European Commission (2011) Report on the Implementation and effect of the Resale Right Directive, COM (2011) 878 FINAL, Brussels: European Commission. 49See more: Corbett, R. (2012) Art Market Watch: How Big is the global art market? http://www.artnet.com/magazineus/news/artnetnews/china-the-worlds-top-art-and-antique market.asp (pristup 15.07.2012). 50 European Commission (1999) Report from the Commission to the Council on the Examination of the impact of the relevant provisions of the Council Direktive 94/5/EC on the competitiveness of the Com- munitiy Art Market compared to the third countrie’s Art Market, COM (1999)185 final, Brussels: Commission of the European Communities, p. 5. 51The Chinese art market was growing at a rate of 5% a year on average over the period 2006-2011, contributing to the share of China in global transactions, increasing from 5% in 2006 to 23% in 2011 (to 46% in 2012) at the expense of U.S. market decrease from 46% in 2006 to 34% in 2011. Ibidem, p. 4; Art McAnderw, C. (2011) Art Market Report: A New Global Landscape , TEFAF http://www. tefaf.com/DesktopDefault.aspx?tabid=148&tabindex=147&postid=5541 (access, 15.06.2012). 52McAnderw, C. (2011) Art Market Report: A New Global Landscape , TEFAF http://www.tefaf.com/DesktopDefault.aspx?tabid=148&tabindex=147&postid=5541 (access, 15.06.2012) 23 idea to create collections which will be emergence of rich mega collectioners investment motives. They buy art as decision to purchase works of art. in many ways representative, without in Dubai, Shanghai, Beijing and Hong an investment property for resale and However, even 87% of respondents specific requirements in relation to the Kong. Asian market of individual profit, structuring their investment would be motivated to treat art as an subject, author or medium (so-called collections started its acceleration in portfolio so as to enable them with less investment, if any credible data on the horizontal collections).53 2006 and today Asian buyers achieve risk higher yields that can achieve in the value of art works and yields exists, 30% share in total sales of artworks. circumstances.54 Their relative market clearly confirming one more time As for individual collections, they have Besides the well-known actors of the share is small. According to research unbreakable bond between the arts and always been on the rise, linked with the art market when obtaining the works by AXA insurance company (2007) economy. affinities regarding the arts, and centers of art is linked with affinity, desire about 73% of respondents are buying of economic power. The most intense for prestige and the accumulation of art for pleasure, 3% for financial profit, growth of individual collections in the property, on the market participate while 24% of respondents reported last 10 years records Asia, with the speculative buyers exclusively with that both motives are influencing their

Graphic 2: Structure of the Art market according to the Graphic 3: Art sales structure according the medium, Graphic 4: Art sales structure according the medium, period of production and art styles 2011. (value share 2011. Asia 2011. Other markets (Europe, USA, etc) of auction sales, in euros)

Source: Ehermann, Th. Ed (2011) Art market trends 2011, Source: Ehermann, Th. Ed (2011) Art market trends 2011, Source: Ehermann, Th. Ed (2011) Art market trends 2011, Domaine del la Source: Artprice.com S.A. pp. 10-12. Domaine del la Source: Artprice.com S.A. pp. 10-12. Domaine del la Source: Artprice.com S.A. pp. 10-12.

53From 87,8 millions of dollars in 2001. on 1,26 billions of dollars in 2011. See more: Ehermann, Th. (ed) (2011) Art market trends 2011, Domaine del la Source: Artprice.com S.A. p. 13. 54Howarth, S. R. (2011) Coorporate Art-Where are we going Now?, International Art Aliance for Corporate Art Collections, http://www.internationalartalliance.org/corporate-art-trends.html, (access, 15.06.2012) 55See more: Goodwin, J. ed (2008) The international art markets: the essential guide for collectors and investitors, London: Kogan Page., pp. 17-18. 56Surveys done so far show that rates of return on invested funds for the purchase of art works ranges in period from 1972-1991. from 18.9% for conceptual art, 23.9% for Minimalist art, 15.8% for European masters. by: Ginsburgh, V. and Penders, AF (1997) “Land Artists and Art Markets.” Journal of Cultural Economics 21: 219-228. Recent studies have shown that the rate is around 13.14% for the works that were for a shorter period of time on the auctions, 11.9% for Impresionists and Modern art, in the range of 7.7-8.5 for Chinese works of Art while Picasso’s works yield about 9% (according to: Goodwin, J. (2007) Art market and Art Fairs 1998-2007, AXA Art Insurance, pp. 17-18, ) 57Artforprofits (2007) Art Investment Survey: What People Really Think A bout Art Investment, http://www.artmarketblog.com/2007/05/02/art-investment-survey-what-people-really-think-about-art-in- vestment, (access, 15.06.2012); Goodwin, J. ed (2008) The international art markets: the essential guide for collectors and investitors, London: Kogan Page, p. 18. 24 REFERENCES:

1.Adižes, I. (2008) Menadžment za magazineus/news/artnetnews/china- COM (2011) 878 FINAL, Brussels: 21.Ilić, M. (1987) Sociologija kulture i kulturu, Beograd: ASSE DOO the-worlds-top-art-and-antique European Commission. umetnosti, Beograd: Naučna knjiga. 2.Artforprofits (2007) Art Investment market.asp (pristup 15.07.2012) 14.Frey B. (1997) Art Markets and 22.Jovičić, S. i Mikić, H. (2006) Survey: What People Really Think 9.De Marchi, N. AND Van Miegroet, Economics: Intruduction, Journal of Kreativne industrije u Srbiji: preporuke A bout Art Investment, http://www. H. (2006) History of Art Markets, u: Cultural Economics 21: 165–173. za razvoj kreativnih industrija, artmarketblog.com/2007/05/02/art- Ginsburgh, V. and Throsby, D. eds 15.Ginsburgh, V. and Penders, A. F. Beograd: Britanski Savet. investment-survey-what-people-really- (2006) Handbook of the Economics of (1997) “Land Artists and Art Markets”. 23.Mc Andrew, C. (2010) The think-about-art-investment, (pristup, Art and Culture, Volume 1, Amsterdam: Journal of Cultural Economics 21: international Art Market 2007-2009. 15.06.2012) Elsevier. 219–228 Broekwal: TEFAF-European Fine Art 3.Artprice. Com (2012) Contemporary 10.Ehermann, Th. Ed (2011) Art 16.Ginsburgh V.A., Mei, J., Moses, Foundation; Art Market 2010/2011: The artprice market trends 2011, Domaine del la M. (2006), The computation of price 24.Mikić, H. (2010) Poslovanje medija, Annual Report, Domaine del la Source: Source: Artprice.com S.A. indices, in Ginsburgh, V.A., Throsby, Novi Sad: Visoka poslovna škola Artprice.com S.A 11.European Commission (1999) D. (eds.), Handbook of the Art and strukovnih studija, Novi Sad 4.Anderson, R. C. (1974) “Paintings as Report from the Commission to the Culture, North-Holland; 25.Mikić, H. (2011) Kulturna poltika i an Investment”. Economic Inquiry 12: Council on the Examination of the 17.Goodwin, J. (2007) Art market and savremeni izazovi finansiranja kulture: 13–26. impact of the relevant provisions Art Fairs 1998-2007, London: AXA međunarodna iskustva i Srbija, Kultura 5.Baumol, W. J. (1986) “Unnatural of the Council Direktive 94/5/ Art Insurance. br.130, str: 75-103. Value: or Art Investment as Floating EC on the competitiveness of the 18.Godwinn, J. ed (2008) The 26.Mulen, R. (1972) Umetnost i Crap Game”. American Economic Communitiy Art Market compared international art markets: the essential ekonomika u savremenim društvima, Review 76: 10–14. to the third countrie’s Art Market, guide for collectors and investitors, Kultura, br. 19/1972 6.Connor, S. (1982) Theory and COM (1999)185 final, Brussels: Lodon: Kogan Page. 27.Mulen, R. (2001) Umjetnost i Cultural Value, Oxford: Blackwell. Commission of the European 19.Helburn, J. and Ch. Gray (2004) tržište: modijalizacija i nove tehnologije, 7.Conseil des ventes volontaires, Communities The Economics of Arts and Culture. Beograd: Clio (2011) Public sales in France, Pariz: 12.European Commission (2001) Cambridge: Cambridge University 28.Ranković, M. (1974) Kultura i Conseil des ventes volontaires http:// Directive on the resale right for the Press. nekultura, Beograd: Vuk Karadžić. www.conseildesventes.fr/images/ benefit of the author of an original 20.Howarth, S. R. (2011) Coorporate 29.Ranković, M. (1996) Opšta stories/rapport2010/uk/rapport-uk. work of art (2001/84/EC), Brussels: Art-Where are we going Now?, sociologija umetnosti, Beograd: Zavod pdf (pristup, 15.06.2012) European Commission. International Art Aliance for Corporate za udžbenike i nastavna sredstva 8.Corbett, R. (2012) Art Market 13.European Commission (2011) Art Collections, http://www. 30.Regan, S. Ed (1992) The Politics of Watch: How Big is the global art Report on the Implementation and internationalartalliance.org/corporate- Pleasure: Aestetics and Cultural Theory, market? http://www.artnet.com/ effect of the Resale Right Directive, art-trends.html, (pristup, 15.06.2012) Buckingham: Open University Press.

25 WEBOGRAPHY

31.Stein, J. P. (1977) “The Monetary Art Radar Asia, http://artradarjournal.com Appreciation of Paintings”. Journal of ERICarts, http://www.culturalpolicies.net Political Economy 85: 1021–1035. Statistics Finland http://www.stat.fi 32.Scorcu, E. A and Zanola, R. (2010) Statistics Macedonia, http://www.stat.gov.mk The right price for Art Collectibles: Statistics Poland, http://www.stat.gov.pl A quintile Hedonic Regression Statistics Norway http://www.ssb.no Investigation of Picasso Paintings, Statistics Netherland http://www.cbs.nl WP10-01, RCEA Working Papers and Statistics Austria Professional Report Series, Rimini: The http://www.statistik.at Rimini Centre for Economic Analysis http://artmarketmonitor.com/ http://www.rcfea.org/RePEc/pdf/ http://www.perrotin.com/artiste.php wp01_10.pdf (pristup, 15.06.2012) http://whitecube.com 33.Vivgari, A., Raičević, B. I Brnjas, International Art Alliance for Z. (2002) Osnovi teorije državnog corporate collections http://www. budžeta I finansijski poslovi internationalartalliance.org/directory- samouprava, Beograd: Evropski pokret of-corporate-art.htm u Srbiji http://whitecube.com http://www.matthewmarks.com http://www.gagosian.com http://thepacegallery.com

26 Hazim Begagić*, MA Hristina Mikić**, MSc Mirjana Rikalo, MA*** *Academy of Drama Arts, University of Tuzla ART MARKET IN BOSNIA AND HERZEGOVINA: STATE, ** SFBC – Group for Creative Economy, Belgrade *** Higher School of Professional Business Studies, Novi Sad PROBLEMS AND PROSPECTS UDK: 304 (497.6); 330/111

SUMMARY: 1. Cultural policy and development of art market

The paper deals with the strategic After the Austro-Hungarian occupation art space has been marginalized, and such as those devoted to the National analysis of the art market in Bosnia in 1878. first artists arrived in Bosnia many young artists did not return from liberation (NOB) at Sutjeska, Kozara, and Herzegovina. At the first part is from the Monarchy, somewhat reviving their studies in Zagreb and Belgrade Makljen (B. Kučanski), etc. 3 given the context of cultural policy the art scene in Bosnia and Herzegovina. and many worthy artists left Bosnia and its specificity in relation to the Intense building activity was expressed at same time. First signs of the revival Last three decades have been marked development of the art market; in the modernization and structural occur with the “Group of Four” and by dramatic changes in the field of art institutional setting of the art market is transformation of Bosnian cities. Along the strong course of engaged art in the world, and political and economic systematically analyzed, professional with this, first native artists started represented by Roman Petrović. Mijić developments in former Yugoslavia will standards, relevant actors in the art to attend European Academies (in and Mazalić formed a group “Circle” mark its own art market development market and financing models and Vienna, Munich, Prague, Krakow, with a clear civic aesthetics in order to with specific sign. forms for culture and visual arts. Budapest and Paris), supported by study nature. In 1939. the association At the end this paper provides a scholarships provided by the Serbian “Collegium Artisticum” was founded, as Three and a half year long tragic war in strategic assessment of potentials and Society “Prosvjeta” and Croatian art association that has pursued the Bosnia, which officially lasted from April limitations of art market development society “Napredak”. All these students synthesis of arts as a function of the 1992. until November 1995, ended in Bosnia and Herzegovina. (A. Popović, L. Drljača, G. Jurkić, B. socialist ideology of the Communist with the signing of the Peace Treaty, Radulović, P. Šain, etc.) bear the mark Party of Yugoslavia2. structuring the country in the two equal Keywords: cultural policy, art market, of local academism. In 1917, after the entities, the Federation of Bosnia and financing culture, participation in great exhibition of artists from Bosnia After the World War II, ULUBiH was Herzegovina (FBH) and the Republic culture, institutional resources of art and Herzegovina, the prevalence founded in 1945, as well as the of Srpska (RS). A few years later the market of domestic art became evident. National School of Painting and Art status of the municipality of Brčko was After the end of the World War I, the Gallery of Bosnia and Herzegovina in defined, which becomes a District, Association of Artists Serbs, Croats Sarajevo. New artists looked for an independent from the two entities. and Slovenes is formed, organizing expression through topics dedicated In relation to the central government numerous exhibitions and establishing to the National liberation (NOB), authorities, entities are hereby given an art associations1. revolution and construction. In the extremely high degree of independence 1950s, timidly and slowly began the in almost all the executive functions At the early 1920s started the change transformation of the Bosnian art of government. Bosnia-Herzegovina’s towards the Neorealism and Magical towards the abstraction. And the state entity is a Federation of ten cantons, Realism (I. Mujezinović, P. Tiješić, M. itself showed more understanding for which are composed of municipalities in Todorović, Đ. Mazalić, etc.). In the newly modern art, sponsoring the biggest which there are total 74. Serbian entity formed state of Bosnia and Herzegovina premieres of abstract monuments is a unique political and administrative

1See more: Art in Bosnia and Herzegovina, short overview – Austria Hungary and Kingdom of Yugoslavia http://www.artstock.ba/default.wbsp?p=7 (access, August 2012) 2See more: Art in Bosnia and Herzegovina, short overview http://www.artstock.ba/default.wbsp?p=7 (access, August 2012) 3See more: Art in Bosnia and Herzegovina, short overview http://www.artstock.ba/default.wbsp?p=7 (access, August 2012)

27 entity of the Republican organization, bodies of government and defining the federal and cantonal authorities. the needs of citizens in the culture. divided into 63 municipalities and strategies on the international level”.4 The fourth article of that chapter states In the Republic of Srpska there is a several cities, as the basic unit of a local Since this ministry covers a very wide that the cantons have thet authorization central Ministry of Education and government. In the Dayton Peace Treaty range of different areas of social over issues that are not expressly Culture in Banja Luka with relatively culture is mentioned only in the context activities, its organizational structure is granted to the federal government, and broad powers. All issues related to the of the cultural heritage preservation complex. Its work is organized through then in paragraph three, immediately culture are the responsibility of the of Bosnia and Herzegovina. Annex nine sectors,5 including the Department after the police and education policy, Department for Culture, headed by the VIII of the Peace Treaty refers to the of Science and Culture under which clearly states their special competence Deputy Minister of Culture. Republic of formation of the National Commission operates the Department of Culture. in the formulation and implementation Srpska founded seven public cultural for the protection and preservation of of the cultural policy.7 In relation to the institutions, including the Museum of national monuments. Annex IV of the Two BIH entities, in relation to the Federation of Bosnia and Herzegovina, modern art in Banja Luka, and from Treaty represents the Constitution aforementioned constitutional autho- whose Ministry assumes the role of a the Republican budget are financed of Bosnia and Herzegovina, and in it rity, separately regulate issues coordinating body between cantonal occasional art projects, implemented in the culture is not explicitly mentioned related to culture, have a separate ministries, it can be observed that it has the Republic of Srpska. in one word, and it is entirely exempt entity ministries of culture, but with no significant impact, normatively and from the jurisdiction of the central significant differences. Speaking financially weakened and oppressed, Brčko municipality status could not administration of authorities of Bosnia of cultural administration in the and cantons and cantonal governments be solved in Dayton, and, after the and Herzegovina. By the Law on Federation, although the federal are those that have a key role and arbitrary decision, the territory of the Ministries and other administrative government has the Ministry of Culture practically sole and full responsibility municipality in northern Bosnia was bodies of Bosnia and Herzegovina and Sports, which has long worked for the management of culture in this named the District in 1998, a single from 2003. Ministry of Civil Affairs with the departments of Education part of Bosnia. administrative unit of local government was established, which, among other and Science in the framework of the under the sovereignty of Bosnia and things, perform tasks in the field of joint ministries, the real decision- Unlike the Federation, the Republic of Herzegovina. Statutes and laws of culture, “which are the responsibility making power in the field of culture Srpska Constitution clearly states that Brčko District are in accordance with of Bosnia and Herzegovina and relate lays primarily on administration of this entity fully regulates and ensures the provisions of the Constitution and to the determination of the basic ten cantons.6 The third chapter of the the area of culture.8 It also says that laws. Since the state of Bosnia and principles of coordination of activities, Federation Constitution clearly defines the municipalities through their bodies, Herzegovina has minimal authority over harmonization of plans of the entity the division of responsibilities between in accordance with the law, care about the cultural sector, and in the Brčko

4An excerpt from the Article 16, Law on Ministries and Other Bodies of Administration of Bosnia and Herzegovina “Službeni glasnik”, no. 5/03, 42/03, 26/04, 42/04, 45/06, 88/07, 35/09, 59/09 and 103/09) 5 1. Department of Legal Affairs, Human Resources and General Affairs; 2. Department of Financial Affairs, and internal support; 3. Department of Citizenship and travel documents; 4Department of Labor, Employment, Social Security and pensions; 5. Department of Health; 6. Department of Education; 7. Department of Science and Culture; 8. Department for Sports and 9. Department of Geodetic, Geological and Meteorological work. 6 1. Una-Sana Canton (Bihać); 2. Posavina Canton (Orašje); 3. Tuzla Canton (Tuzla); 4. Zenica-Doboj Canton (Zenica); 5. Bosnian Podrinje Canton (Goražde); 6. Central Bosnia Canton (Travnik); 7. Hercegovina- Neretva Canton (Mostar); 8. West Herzegovina Canton (Široki Brijeg); 9. Canton Sarajevo (Sarajevo) and 10. Canton 10 (Livno) 7The Constitution of the Federation of Bosnia and Herzegovina “Službene novine BiH” no. 1/94, 13/97, 16/02, 22/02, 52/02, 63/03, 9/04, 20/04, 33/04, 71/05, 72/05 and 88/08, Chapter III, Art. 4, p.1, al. c. 8Amendment XXXII to the Constitution of the Republic of Srpska, paragraph 12 Službeni glasnik RS, no. 48/94 & 11/98. 28 District, which is administratively financed by public funds adopted by Herzegovina 2004-2007 (PRSP), in BIH.11 In the Republic of Srpska, the independent entity governments, the Assembly on the basis of the annual creating the possibility for a cultural strategy of cultural policy and action culture is almost entirely the plan of sub-units. In addition to these policy to be considered as one of the plan for the period 2010-2015 was responsibility of local authorities. Brčko levels, in Bosnia and Herzegovina, local strategic policies for the development adopted with programmed actions and District of Bosnia and Herzegovina levels of cultural policy and cultural of a society. After a period of programs of cultural development. was officially founded in 2000, and development is under the jurisdiction preparation and analysis, Strategy the District Assembly in the first three of competent municipality services. of BIH cultural policy was adopted From the perspective of narratives years passed more than 70 laws, These are mostly Social Services. in 2008, and strategic objectives, that make up the strategy of BIH including none from the field of culture. measures and conditions for reflection cultural policy, it is difficult to conclude Within the Brčko District Government During the last decade of the 20th on the development of the cultural what are the achievements and its Department operate Department for century, the cultural sector has sector in BIH presented on the overt prospects. BIRN Research Network on Economic Development, Sport and been significantly marginalized in level. Explicit cultural policy conducted Cultural Policy in Bosnia shows that Culture, with the Sub-Department Bosnia, given that socio-economic in BIH is primarily based on the freedom most of the cultural actors are more for Tourism, Sports and Culture, with circumstances require active measures of expression, and organization of than unsatisfied with the situation in the functions and authorities in the in the most urgent social sphere. various groups as a prerequisite for BIH culture. Some of them complain field of culture.9 This Sub-Department Advocacy systemic approach in creative production. This principle is about the very abstract concepts and proposed to the legal team in 2002. cultural policy and the importance of supported by various forms of financial guidelines set by most cantons without creation of the Law on cultural goods its implementation in Bosnia began and administrative decentralization implications in terms of practical of the Brčko District. For this law was in 2002. with the project of the in several areas: legal regulation, implementation,12 and they see some never made any draft, since it was never Council of Europe and the Evaluation financing, and various levels of decision weaknesses in the wrong approach to among the priorities of the government Report on Cultural Policy in Bosnia making. Cultural diversity that mostly the cultural policy and in the limited commission. Review of regulations and Herzegovina by Charles Landry.10 characterizes BIH society, stems from level of stakeholders’ participation in its in the field of culture for the Brčko In June 2006, at the initiative of the its demographic and ethnic structure, adoption and implementation. Possible District of Bosnia and Herzegovina Commission of Council of Ministers and is mainly affirmed through the solution is seen in further reforms and in does not exist. All cultural institutions of Bosnia and Herzegovina to create self-definition and development of greater levels of participation of artists in the District are parts of the Sub- cultural strategies in Bosnia, the traditional values ​​and content, but and different levels of government.13 Department for Tourism, Sport and cultural sector for the first time was also through the innovative practices However, a progress is not made in Culture (Gallery of the Brčko District, included in the revised Medium Term of each culture that participate in the this area, and sporadic initiatives have Cultural Center and Library) and are Development Strategy of Bosnia and creation of a common cultural space serious impacts on the existing system,

9Sub-Department for Tourism, Sport and Culture includes activities related to galleries, theaters, cultural associations and events, library, sports, tourism and other activities that are consistent with the amendments to the Law on the executive government in Brčko District BIH (“Službeni glasnik Brčko distrikta BiH “, No. 2/00, 9/01, 12/01, 16/01, 17/02, 8/03, 14/03, 31/04 and 40/05) 10Charles L. (2002) Cultural Policy in Bosnia and Hercegovina: Expert Report, MOSAIC PROJECT, Council of Europe, CDCULT(2002)17B, 10 September 2002. 11In BiH, except the three constituent entities - Croats, Serbs and Bosnians, cultural values and creativity is confirmed by 17 other national minorities relying on the work of the national cultural and educa- tional societies. See more: Council of Ministries BIH Ministry of Civil Affairs (2008), Strategy of cultural policy in BIH, the Council of Ministers, BIH- Ministry of Civil Affairs. 12Copf, A. (2011) „Kultura u statusu quo“ niko nije kriv, a ništa ne valja, BIRN, Balkanska inicijativa za kulturnu suradnju, razmjenu i razvoj – BICCED, 9. juli 2011. (access May 2012). 29 for several reasons. The dispersion and without significant intervention in about BIH conditions is difficult to patrons, public funds, purchases, etc.) of the cultural and political model and relation to the government’s original apply. Sporadic sales of artworks, except in a rudimentary form, the only the system of management in culture, proposals. In the complex cultural- awards, scholarships, and occasional strategy for cultural institutions, art and the lack of influential professional political and administrative systems residencies are certainly insufficient organizations and artists themselves, organizations, are just some of evident in BIH, at any level of government or to seriously approach the art market. was – to cope. ”15 reasons for the lethargy in the art administrative units responsible for The largest numbers of Bosnian artists profession. the adoption of new laws, there were continue to earn a living from work that Generally it can be said that the value no significant reactions of professional is not a direct artistic creation, but of a work of art, even if it is constantly The need to raise public awareness organizations, associations or mostly in education field, curatorial changing, is directly dependent on the about the reforms in the cultural system, individuals. Only few newspaper work, commercial design, advertising system of art. The system is made up and to strengthen the participatory articles approached this subject on campaigns, and the like. State of the of many subjects, among others are process through the adjustment and new legislation on arts and culture in a art scene in Bosnia and Herzegovina, galleries that are certainly an important adoption of the cultural activities more systematic and analytical manner. D. Blažević best described in her factor, as long as such attitudes are at different levels of government, is In contrast to this, we can observe the essay for the catalog of the exhibition reviewed historically. Art market in never followed by public debate in lack of significant and increased media “Međuprostor”,14 as a “vacuum state” BIH is still relatively conservative, and media. Unfortunately, in the context interest for this topic, largely credited in Bosnian art: “Background, which many contemporary artists think that it of complete disorientation and lack of by the absence of the reaction by the essentially determines the cultural and will take a long time before the art trade interest of experts, it is illusory to hope profession itself. art currents in BIH concerns its social would be, at least, partially separated that any serious initiative will take place and political realities. Deep tremors from the gallery, and even then it will be or systematic and persistent work of If the art market is viewed in its and changes that have fundamentally hard to find some new system. experts on the adoption of new laws or broadest sense, which would imply that reshaped this country have started the amendments to existing ones, which the market presents every form of art process of territorial and ideological- would comply with the requirements production that gets an institutional or political disintegration of Yugoslavia in and articulate the consensus views of private funding, then one could conclude 1990s, and ended with the war (1992- the profession. Although the obligation that most of the artists in BIH belong to 1996.) and imposed peace. (...) In this of the lawmaker is to put these legal some kind of a market. If on the other economic, social and cultural vacuum, documents in public hearings, the laws hand, we are strictly referring to the art with the absence of policies, primarily of culture and art production in the market, which implies continuous work cultural, the lack of arts systems parliamentary procedures are adopted with commercial galleries, art fairs and (system of galleries and museums, almost without any serious debate so forth, then the statement mentioned art market, collections, sponsors,

13The stagnation in the reform of cultural policy, prompted representatives of the public institutions, private and civil sectors that during the realization of a three-day workshop on cultural management (July 2011), organized by the production house Deblokada, adopt the document “Stolac Declaration on culture in Bosnia and Herzegovina.” At the time of the adoption of the Declaration, the conference “State of the institutional culture in Bosnia and Herzegovina” was organized by the International Theatre Festival MES to point to the problems in the institutional sphere of culture and, indirectly, to the limitations of civil cultural sector. See more: http://www.forumteatar.com/okrugli-sto/u-organizaciji-mess-a-odrzana-konferencija-o-stanjuinstitucionalne-kulture-bih (Access May 2012); Stolac Declaration on culture in Bosnia and Herzegovina http://www.sff.ba/news/show/id/672/culture/ba?symfony=b74cbe8a383abf0d14536e307c7811ef (access May 2012). 30 2. The regulatory framework of visual arts in Bosnia and Herzegovina

On the political map of Bosnia and and Herzegovina-Neretva). With this, in the Federation (Canton Sarajevo, regulated this field. In accordance with Herzegovina we can observe a complex situation in this area is significantly Zenica-Doboj and Una Sana Canton).17 legal regulations museum activities are administrative and political structures complicated by a situation, somewhat Some cantons have regulated in their performed by museums as institutions, and complex internal organization of paradoxical and rather absurd: one half laws issues on indenpendent artists museum collections, galleries, mu- the Bosnian state, structured in two of the country has regulated cultural (Tuzla, Bosnia Podrinje and Central seums and museum collections entities: the Republic of Srpska and the activities in one way, one quarter has Bosnia Canton).18 within institutions and other legal Federation of Bosnia and Herzegovina done it also, but in a different way and entities. Under existing laws museum with its ten cantons and Brčko District uneven, and the remaining quarter Laws on museum activities normatively activities are performed by galleries as of Bosnia and Herzegovina, as an entity (six cantons in Federation and Brčko regulate to a significant extent the institutions if they have any museum of independent territory. So, as was District BH) did not use its authorization system of visual arts, particularly material. Under the museum material stated earlier, out of 12 organizational, of legal regulation of arts and cultural gallery activities. Such laws in Bosnia law includes, among others, art administrative and political units with activities or only partially, and there are are overall six, on as many different achievements, as well as “other spiritual predicted constitutional jurisdictions, still in force former laws from SR BIH levels of government, which in their products.” Most of the law stipulates five of them have adopteda package of from the period until 1991. jurisdiction deal with questions of that the funds for the establishment legislative solutions in all major areas of cultural policy, in the Republic of Srpska and operation of museums, galleries, cultural activities (laws about museum, Although existing laws that govern and five cantons in Federation of Bosnia museum collections are provided by the archive, publishing, library and theater certain areas of culture in BIH in many and Herzegovina.19 All of today’s BIH founders themselves. activities, the laws on cinematography, of their provisions may not present a museum laws in their provisions govern cultural goods, etc.)16. bad solution, it is indisputable, however, the conditions and manner of museum Otherwise, museum activity in these the fact that for years they mostly activities, the museum’s holdings, laws is defined as a systematic For instance, compared to the previously do not apply. It is also true that their establishment, organization and research, collection, processing, introduced system of cultural policies incompatibility with other statutory operation of institutions, governance storing, expertise, conservation, and cultural and political authorities in provisions somewhat impedes their and management, museum advices, presentation and publication of the Bosnia and Herzegovina, in the country application. For a large number of professional staff, funding, and other museum collection. It is interesting to is currently defined legislative system artists in Bosnia was particularly issues of importance to this activity. point out that the law clearly states that in culture in five administrative units, in significant harmonization and adoption These laws govern the conditions and the work of these institutions is public, the Republic of Srpska and four cantons of the laws on freelance artists, that manner of museum activity that is of and the public character is achieved of the Federation with more developed is the law on acquiring a status of significance to the entity of Republic in particular by publishing research cultural scenes and art production independent artists brought by the of Srpska, or for those cantons in programs and projects through (cantons Sarajevo, Tuzla, Zenica-Doboj Republic of Srpska and several cantons the Federation who have normatively preliminary scientific and technical

14„Međuprostor“ presents a very important exhibition for the BIH art market, realized in 2010. The project included the visit of artists from Banja Luka to Sarajevo, and was undertaken in cooperation with the Museum of Contemporary Art RS and the Art Gallery BIH. 15Blažević, D. (2010) Međuprostor (exhibition catalog), Sarajevo: Art Gallery BIH 16At the example of the Republic of Srpska, those are the following laws: Law on the Archives (“Službeni glasnik RS”, no. 119/08), Law on Museum Activities (“Službeni glasnik RS”,, no. 89/08), Law on Librarian activi- ties (“Službeni glasnik RS”, no. 52/01, 39/03 and 112/08), Law on theater activities (“Službeni glasnik RS”,, no. 25/02 and 109/11), Law on Publishing Activities (“Službeni glasnik RS”,, no. 46/04), Law on entretain- ment activity (“Službeni glasnik RS”,, no. 46/04 and 106/09) and Law on Cinematography (“Službeni glasnik RS”,, no. 37/09) and the Law on Cultural Property (“Službeni glasnik RS”,, no. 11/95 and 103/08). 31 publications, books, monographs, Recent legislation obliges Ministers Among the cantons in the Federation legislation, as well as the scope, method catalogs and magazines, as well as responsible for cultural affairs to adopt who have never regulated gallery activity of adoption, content and structure of permanent and temporary exhibitions regulations in the form of by-laws, to with separate statutory provisions and these acts. BIH always had its tradition in the country and abroad. The laws regulate in normative terms gallery and solutions are those in whose centres, of museum lex specialis or laws that clearly state that museum activity has museum activities. Only a part of these according to some analyzes, is present specifically deal with museum and the task to preserve, study museum regulations has been adopted, and in the minimum of requirements and gallery activities. Solution would, of material and to make it available to the the cantons of the Federation which predispositions for the establishment course, be changed, especially when it is public, as part of national and universal do not have these laws, in force are of public galleries or museums with evident that the reforms are necessary. human cultural heritage, and museum rules adopted by the Assembly of the art collections and where, in fact, such If we look at the BIH environment, we activities are defined as activities of Republic of Bosnia and Herzegovina, in initiatives and ideas are already present have to take notice of how they gave general interest. the 1990s.20 and seriously considerate. up their specialized laws in a number of European countries, adopting some Table 1 : Overview of the most important documents in the field of visual arts In addition to the law on museum form of a uniform law on culture. Of activities, three cantons in the period course, it is necessary to analyze what 2007 - 2009, adopted general laws these countries have received for the on culture (Podrinje, Una-Sana Canton adoption of umbrella legislation for and Central), with Tuzla Culture Law culture. But above all it is necessary passed in 1998. These laws, among to analyze the situation and determine other things, define the extent and the basic guidelines for museums and gallery activities as part of the cultural galleries for their further development system. Looking at these issues in a and mission. Certainly it remains the European context, it is truly a small question of whether the so-called number of states that have legislation general laws of culture are wide enough regulating special gallery and museum as legal framework, within which we can activities, and even less literature that find museum and gallery activities and would process this material. Since the legislative minimum that would enable beginning of the 1950s it was discussed adequate regulation for successful in a number of European countries, conduct of operations and development,

Source: Overview of legislation in culture at the official entity portals for culture: www.kultura.fmksa.com and www. especially in Western Europe, the need or it is still necessary to adopt specific ekluturars.com (access 12.08.2012) for harmonization and adoption of this legislation in the form of lex specialis.21

17„Službeni glasnik RS“, no 50/10 , “Službene novine KS”, no 20/10, “Službene novine ZDK”, no 2/05 and “Službene novine USK” no 12/03 and 15/10 18“Službene novine TK” no 8/98, “Službene novine BPK” no 7/04 and “Službene novine SBK” no 13/06 19Cantons in the Federation of BiH that have adopted, within the legislation in culture, laws on museum activities in the form of lex specialis are (chronologically, according to the year of law adoption): Canton Sarajevo (2000), Tuzla Canton (2002), Zenica-Doboj Canton (2003), Una-Sana Canton (2003) and West-Herzegovina Canton (2009).

32 3. Institutional resources of the art market

In Bosnia and Herzegovina, centers of professional gallery spaces, with over balanced geographical distribution of authorized units to implement cultural administrative units also present five 30 galleries and exhibition spaces in infrastructure and making possible for policy in the Federation, appear only largest cultural centers in the country the various forms of ownership, with nearly 58% of the population to meet in two cases as gallery founders. So (Sarajevo, Banja Luka, Mostar, Tuzla and different missions and goals, and their needs for the visual arts. According Sarajevo Canton took founder’s rights Zenica) that traditionally, for more than different program profiles, space and to the number of programs in both and obligations for the Sarajevo City sixty years, hold overall cultural and human resources.22 entities, art programs are dominant, Gallery, the “Collegium Artisticum”, and artistic development in the country. In while the most common mediums are Tuzla Canton with contract in 2006. the aforementioned centers the largest There are only few city public galleries painting and photography. It is also took over the part of the founder’s number of artists lives and works, in Bosnia and Herzegovina, founded important to note that in the Federation rights over the International Portrait including a major part of the network by cities and municipalities (Bihać, of Bosnia and Herzegovina, Sarajevo, Gallery in Tuzla. of institutions and organizations in the Brčko). Municipalities with gallery Tuzla and Mostar have become centers system of visual arts, museums, public infrastructure allow for only 43% of of visual art, with concentration of In addition to public galleries in Bosnia and private galleries, art schools and the population to meet their needs for about 55% of the gallery infrastructure and Herzegovina, we can notice the academies, etc. visual arts. Infrastructure dispersion and almost 75% of the total number trend of opening a large number of index of 0.33 indicates that in the of visual arts programs per year, while private galleries, as well as galleries As for the art market infrastructure, its Federation of Bosnia and Herzegovina in the Republic of Srpska centers of founded by representatives of a civil geographic distribution is not always on average on every 48,790 residents visual arts represent Banja Luka, Pale society, among which are associations, in line with the demographic structure, comes one gallery, while the same ratio and Bijeljina with about 50% of gallery foundations, religious organizations, and it is often the case that works for the Republic of Srpska is 41,000 infrastructures. national cultural societies and similar can not reach out to the audience. For residents.23 Regular exhibition activities forms of organization. These galleries example, in the Federation of Bosnia in some areas are implemented as an There are few public galleries in Bosnia are usually present in the form of the and Herzegovina there are cantons integral part of activities of the cultural and Herzegovina, founded by local multi-functional exhibition spaces, without professional gallery spaces centers or theatrical institutions, if their authorities, municipalities and cities, including often catering facilities, and (Posavina, Central Bosnia, Herzegovina- facilities have specialized gallery and or cantons in the Federation. Among where in addition to organization of Neretva, West Herzegovina and exhibition spaces.24 This is especially all forms of public cultural institutions exhibitions, other forms of cultural Bosnian Podrinje), while other cantons common case in the Republic of Srpska, in Bosnia and Herzegovina, the rarest diffusion are taking place, such as have rather unified distribution of the where significant part of visual arts ones are public galleries, in relation lectures, panel discussions, public gallery capacities, except Sarajevo presentations is taking place within to libraries, museums and theaters. lectures, promotions and the like. Canton with the highest number of cultural centers, thus achieving a more Cantons, as the only constitutionally Frequent phenomenon on the art scene

20These are the following acts: Regulation on conditions for the foundation and start up activities for museums and galleries (“Službeni glasnik BIH”, no. 2/94), Regulation on the content and method of keeping the input and output of books, inventory books, gift books, files and photo libraries and museum materials “Službeni( glasnik BIH”, no. 2/94) and Regulation on professional titles, terms, conditions and manner of acquisition of professional titles in the museum profession (“Službeni glasnik BIH”, no. 2/94). Law on museum activities RBH from 1993, ceased to apply with the new cantonal museum laws in FBIH (“Službeni glasnik BIH”, no. 13/93 and 20/93). 21 Lex specialis is a legal doctrine that applies to the interpretation of the law, and can be applied in both the domestic and international law and contexts. The term indicates the law governing a particular subject, and comes from the Latin legal maxim lex specialis derogat legi generali. Under this doctrine, a law regulating certain themes is stronger than the law which regulates only general questions. According: Lex specialis Law & Legal Definition. Legal Definitions. USLegal, Inc.., Http://definitions.uslegal.com/l/lex-specialis, (accessed 20 May 2010). 33 is the so-called cafe-gallery, especially In presenting contemporary art sce- Kozara, Kulen, Vakuf, Travnik, Trebinje, can be observed in the context of the in urban centers, owned by local ne in Bosnia and Herzegovina, it is Tuzla, Usora, etc.). Organizers of these region, in which they operate, cultural artists. A large number of these gallery unavoidable to mention a multitude colonies are commonly associations policies reflected on the institutional spaces are of the selling character, of art colonies, out of which Počitelj of artists, galleries, national cultural system, the requirements of the artists often performing selling activities as is certainly the most famous one. But groups, cultural centers, and sometimes and increasing needs of the audience. gift shops and bookstores. Memorial many other art colonies and workshops artists themselves. In Bosnia today Among the most important actors of galleries, until recently, did not exist have increasingly greater significance there are still no professional auction the art market in general regarding the in Bosnia, and first such gallery was and international character (Banja Luka, houses. To this we must add six development of visual arts in Bosnia and opened in Sarajevo in 2012 to mark the Bihać, Bosanski Brod, Bosanski Novi, academies and faculties with programs Herzegovina are: the National Museum anniversary of the Srebrenica tragedy. Bugojno, Doboj, Fojnica, Gradačac, in Fine Arts, including three Academies of Bosnia and Herzegovina, The of Fine Arts. Museum of Contemporary Art of the Republika of Srpska in Banja Luka, Art A more detailed analysis on the Gallery of Bosnia and Herzegovina, the work and activities of the museum Center for Contemporary Art, Sarajevo, and gallery institutions, and other City Gallery Collegium Artisticum, the institutions and organizations that Art Collection and the project “Ars Aevi” Table 2: Review of art market actors in Bosnia and Herzegovina, 2006-2010. promote the visual arts needs to and others. be observed in a relation to cultural policy and cultural changes in their The National Museum of Bosnia and environment. Ungrateful and unstable Herzegovina is the oldest museum in financial situation inherited from the Bosnia and Herzegovina, established past, material destruction made during in 1888. Since the beginning, this the war, general decline in values ​​and museum was a complex scientific other intangible traces of devastation and cultural institution developing a that have influenced the cultural and range of different disciplines, including Note: *only the Federation of Bosnia and Herzegovina¹ public galleries that operate as independent institutions, private galleries are not covered; in the Republic of Srpska because of the absence of the systematized database arts scene, and deepening political art history. In fact, thanks to its art of gallery spaces, the number of galleries presented in a table is based on data from the cultural portals and and economic crisis, will inevitably display, the National Museum was the directories. be reflected in the work of these first institution in the cultural history Source: Agency for Statistics of Bosnia and Herzegovina (BHAS), the Federal Office of Statistics (FOS), Statistical Yearbook 2006, 2007, 2008, 2009, 2010 and 2011. institutions. Their program activities of Bosnia and Herzegovina, which

22List of art galleries in Sarajevo: 1. Gallery of the Academy of Fine Arts (ALU), 2. Art X Club, 3. ASA Art Gallery, 4. Studio „Zbirka Zec“, 5. Charlama Depot, 6. Egzotik art, 7. Facta, 8. Gallery „Boris Smoje“, 9. Gallery „Collegium artisticum“, 10. Gallery„Gabrijel“ (Chamber Theater ‘55), 11. Gallery „Gaudeamus“ - AKCUS „Seljo“ (Arcus Gaudeamus Club), 12. Gallery „Mak“ of the Museum of literature and theater art BiH, 13. Gallery „Novi hram“, 14. Gallery „Paleta Ćulhan“ (Stari Grad – Jelića), 15. Gallery „Paleta“, 16. Gallery „Preporod“, 17. Gallery „Roman Petrović“ ULUBiH, 18. Gallery of the Franciscan Monastery „Sveti Anto“, 19. Gallery BKC (Bosnian Cultural Center), 20. Gallery Blackbox, 21. Gallery CDA (Theater „Sartr“), 22. Gallery Duplex/10m2/100m2, 23. Gallery Evergreen, 24. Gallery Java, 25. Gallery of Mersad Berber „E&A“, 26. Gallery of the Youth Theater, 27. Gallery SPKD „Prosvjeta“, 28. Gallery of the School of Applied Arts, 29. Exhibition hall of the Historical museum BIH, 30. Exhibition hall of Kuršumli madrassa, 31. Collection of the contemporary art „ARS AEVI“, 32. Art gallery of Bosnia and Herzegovina and 33. Gallery space of the City Hall. 34 systematically approached the field the initial activities of the National gallery is open to the public 13 years the last ten years varies from 10 to of art heritage and contemporary Museum were brought to an end and later, in 1959, with its first permanent 20, which is certainly a respectable visual art production. From the very transferred to the newly established display. Today the collection has number even for those galleries and beginning, great attention was paid to institutions. Among institutions that over 6.000 inventory items divided museums operating in more stable the educational and cultural function, have evolved from the earlier activities into multiple collections27. Since the financial situation. In 2010, apart from and activities of the museum created of the National Museum is definitely Art establishment, in the Gallery was becoming the permanent exhibition, a basis for all of today’s collections. Gallery of Bosnia and Herzegovina,25 organized, prepared or hosted over Gallery has organized 16 exhibitions, During the period of Austro-Hungarian the first and only art gallery founded 900 big and small exhibitions, and a member of the European network of occupation scientific researches were by the Republic. The end of war published more than 150 of its own museums joined for the manifestation carried out under the strong influence devastations in Bosnia supposed to publications. During the period of the Museum Night. Since the adoption of the development and direction of mark the beginning of the post-war war and the siege of Sarajevo (1992- of the Dayton Peace Treaty and the arts and sciences of Europe in the reconstruction phase of the museum 1995), Gallery did not stop with its Constitution, unresolved question nineteenth century. During the period and gallery activities in the country. activities, organizing only in this period of the legal status of this institution from the First to the Second World However, complex political situation 42 exhibitions. The most difficult time lead to many problems in the work of War, Bosnia and Herzegovina was not and elaborated administrative structure for this institution was after the Peace the Gallery, indicated by the fact that at the center of socio-economic, art of the country and inadequate attitude Treaty for Bosnia and Herzegovina, in 2011, Art Gallery of Bosnia and and cultural movements in the newly towards cultural and historical heritage which did not predict the existence of Herzegovina was forced to close its formed state community as reflected has prompted the continuation of the national cultural institutions within the premises for visitors.29 in the work and development of the difficult situation for the museums and new structure of the cultural system National Museum, which at that time art galleries, along with other cultural in the country. With this, Art Gallery Museum of Contemporary Art of experienced the lowest point of action. institutions founded by the former of Bosnia practically lost its founder, the Republic of Srpska in Banja Period of stabilization of the National Republic of Bosnia and Herzegovina.26 and thus direct financing body. Annual Luka: currently acts as central Museum after the Second World War visits to the Art Gallery are about institution for contemporary art in moved ahead relatively slowly. However, Art Gallery of Bosnia and Herzegovina 20.000, out of which in summer time the Republic of Srpska. Museum within the general advancement of was founded by the decision of the period most visitors are tourists, and was founded in 2004, renaming the social and economic relations culture Government of the National Republic in the school year period, students Gallery of Fine Arts of the Republic has become an activity of special social of Bosnia and Herzegovina on October and scholar population. Despite the of Srpska, although the gallery since significance, and in this period the 11th, 1946. The core of the initial extremely poor financial situation, its founding in 1971 had a character National Museum has been extremely collection consisted of about 600 Art Gallery did not cease to organize of a museum. Specifically, the gallery successful in all activities. In the period artifacts taken from the Gallery of the and present exhibitions.28 The annual immediately after the establishment after the Second World War, some of National Museum of that time. The number of temporary exhibitions in began to fill the collection funds and

23Index infrastructure dispersion is related to professional public galleries, which operate as independent institutions. 24For example, galleries at the Center for Culture in Doboj, Bosnia’s cultural centers in Tuzla and Sarajevo, the Cultural Center “Banski Dvori” in Banja Luka, the National theater RS in Banja Luka, Chamber theater 55 in Sarajevo, the Bosnian National Theatre in Zenica, and the like.

35 act as a museum institution applying model of organization and activities in in cooperation of UNESCO and the in Sarajevo in the modern sense of the modern museological principles and the culture at the art market of Bosnia Sarajevo Canton, with financial support word, in sports and business complex requirements of the time. As part of and Herzegovina. Given that it does by Italian government in 2007. in the Skenderia downtown. In the late 1990s the Museum of Contemporary Art not have its own gallery space, the facility of Cultural and Sports Center Sarajevo Canton has taken founder’s of Republic of Srpska today there Center acts as a mobile art center, “Skenderija” in Sarajevo. The purpose rights and obligations, by which this are four Departments: Collections, complementary and alternative in of this space is preservation and institution has become one of the 14 Documentation, Educational work, relation to the existing art institutions. presentation of the collection, formed cantonal public cultural institutions in and Exhibition and Program activities. Most of its projects, such as annual by the project “Ars Aevi” in cooperation the city of Sarajevo, the only one in the Museum’s holdings extend to over exhibitions, take place in open spaces. with the most prominent artists of the field of visual arts. 35 1.300 works of art (paintings, The change of the environment - moving world, expressing their solidarity with sculptures, prints, watercolors, from art (gallery) to non-art space the besieged city with this act. The Gallery “Roman Petrović” in Sarajevo drawings and works in the area of​​ (streets and squares), changes the way project, which began in 1992, with was established in 1980, at the initiative extended media).30 how artists think and act, influencing much difficulties, continues to develop of ULUBIH members, with commitment the selection of content, resources, as a prestigious international initiative of the City of Sarajevo and is named Center for Contemporary Art (SCCA) and communication with the audience. where the presence of respectable after the first President of ULUBIH, was founded by the Open Society Through such activities, it has created artists whose works are waiting for one of the most important Bosnian Fund of Bosnia and Herzegovina in an entirely new art scene, changing the the museum setting. guarantees the painters. The gallery is symbolically 1996, and since 2000 the Center is art paradigm and understanding of the quality33. opened with an exhibition by Roman an independent organization. SCCA function of culture and arts. 31 Petrović (1896-1947), with loans from since its founding has produced and City Gallery “Collegium Artisticum” the collection of Art Gallery of Bosnia organized a number of exhibitions, Art collection and the project “Ars was established as an art gallery and Herzegovina. The same exhibition actions, workshops, seminars, Aevi” Sarajevo, by the opinion of by three associations of Bosnia and was launched in October 2007, on the lectures, presentations, in Sarajevo, many international art critics and Herzegovina: Association of Visual occasion of the sixtieth anniversary of in Bosnia and Herzegovina and historians of art, is one of the most Artists (ULUBIH), Association of Applied the artist’s death and sixtieth birthday abroad; financially and logistically valuable collections of contemporary Artists and Designers (ULUPUBIH) and of the Association of Artists of Bosnia has supported new art production, art in the Western Balkans. This the Association of Architects (AABIH), and Herzegovina. With its 103 square produced numerous multimedia works collection contains artworks by some taking the name and ideals of the meters, Gallery Roman Petrović is one of artists, published catalogs and other of the world’s greatest artists who have progressive art group from Sarajevo of the best exhibition spaces in the art publications, and collected and donated their works to Sarajevo during Collegium Artisticum.34 The gallery is city of Sarajevo, meeting place for analyzed art documentation. SCCA in the time of the siege, since 1992.32 The housed in a purpose-built exhibition artists and seat of the Association. each case represents an entirely new Art Depot “Ars Aevi” was reconstructed hall, in one of the first shopping centers Through the affirmation of fine arts,

25In addition to the National Gallery there are the Institute for Protection of Cultural Monuments and Natural Rarities of Bosnia and Herzegovina, then Oriental Institute, Institute of Balkan Studies, Institute of Biology, Folklore Institute and Phytopathological Institute. 26See more: http://www.zemaljskimuzej.ba/ 27Bosnian art collection, the Collection of Ferdinand Hodler, Icon collection, Yugoslav art collection, International collection of donations, Collection of photographs and new media and Art Archive “Nada”. 36 and relationship with the artists and the according to the highest standards of galleries in the former Yugoslavia. Public institution “City Gallery” audience, the Gallery “Roman Petrović” with sophisticated technical equipment Art Gallery of Brčko District today in Bihać was opened on November has attained a status as one of the most and infrastructure, and as such is one functions within the Government 25th, 1998. Gallery building was fully prestigious exhibition spaces in Bosnia of the most modern gallery spaces in Department of Economic Development, funded by local community, and after and Herzegovina .36 BIH. Major part of the gallery space Sub-Department of Tourism, Sports the opening, with the Decision on the is designed for permanent exhibition, and Culture. The gallery’s holdings foundation of public institution, the Memorial Gallery “11/07/95” was while the second part is scheduled have approximately 1.000 artworks, Municipal Council Bihać has taken opened in Sarajevo in July 2012, as for temporary exhibitions. Memorial which are classified into several founding rights and obligation of the first memorial gallery in Bosnia Gallery is intentionally opened in collections. In a large exhibition hall funding of the City Gallery. Giving the and Herzegovina, whose construction Sarajevo as the capital and tourist in the gallery are organized about 20 status of a public cultural institution was initiated by the Government center, making available the permanent exhibitions per year, followed by the to the City Gallery, Bihać, with earlier of the Republic of Turkey, a project exhibition to the wide world public.38 publishing activity (posters, catalogs opening of the Secondary School of funded by the Agency for International and invitations). Since 2000 Gallery Applied Arts, the city of Bihać has Cooperation and Coordination (TIKA). Art Gallery of Brčko District BIH organizes traditional International Art become one of the most recognizable Basic display consists of works by in Brčko was opened in 1975. On Symposium - Workshop “Sava” with and developed art communities in post- art photographer Tarik Samaraha the call for the establishment of the renowned artists from countries along war Bosnia. 40 with video testimonials, more than gallery, famous artists from all over the Sava River Basin. Gallery also 600 portraits, maps of locations the former Yugoslavia responded, and organizes art school, “Young Talents of For Gallery “Likum ‘76”, Municipal and a list of the 8372 victims of the donated their works, so Gallery today the Brčko District of BIH”, while for local Council of the city Visoko in late 2011. Srebrenica tragedy. The authors of has international content of works of artists organizes the work in the “Open adopted the initiative to establish the permanent exhibition and the art. In the showrooms of the Gallery, art studio.” Art Gallery in Brčko has a the status of a public institution, filed exhibitors are numerous organizations a large number of collective and solo leading role in the arts and culture in by the Association of Artists from and associations from Bosnia and exhibitions was organized. Since its Northern BIH and very significant role in the city of Visoko. This initiative was Herzegovina and the European foundation the gallery had a very the overall galleries activities in BIH.39 adopted providing that the funding of countries.37 The gallery is equipped successful collaboration with a number all obligations for employed workers

28National Gallery work is funded entirely from the so-called grants, through public Open Calls, primarily from the budget of the Federation of Bosnia and Sarajevo Canton, through the ministries of culture and sport, and from the budget through the Ministry of Civil Affairs of the Council of Ministers. Due to the professional efforts of the staff in recent years, this institution managed to perform its regular activities, obtaining its own income in the range of 25% to 30%, of the total cost, which for this type of facility is certainly a high proportion of self-financing. Until 2000, regular work of the National Gallery was funded by the Canton of Sarajevo through the competent Ministry, following two years of funding by the Federal Ministry of Culture and Sports, which then, referring to the absence of constitutional authority and without a notice, refused further funding for these and six other cultural institutions founded by the Republic of Bosnia and Herzegovina. Since then, as an interim solution, the Art Gallery of Bosnia and Herzegovina was left to the grant funding from the budget, through the Ministry of Civil Affairs. Funds for the regular activities of the National Gallery of Bosnia and Herzegovina in recent years achieved the level of support for an open competition announced by the Ministry of Civil Affairs annually. These funds (about 150,000 BAM) are insufficient to maintain the achieved level of work for six months. To cover the basic costs of the National Gallery, excluding program activities, about 450,000 BAM are needed. Art Gallery of Bosnia and Herzegovina initiated the resolution of its final status to the competent authorities of the State, with the full support by the Office of the High Representative in Bosnia and Herzegovina, the Human Rights Ombudsman and mass media, but the answer is still lacking. 29See more: http://ugbih.ba/ 30See more: http://www.msurs.org/ 37 accept government ZDC’s, in the same exhibitions of artists with and without International Portrait Gallery in Tuzla separate dimension. Relying on the way as other public finance and cultural disabilities and regional art colony for was formed on amateur basis in 1964, tradition, the Portrait Gallery has institutions in the Canton area. For its people with disabilities. Local academic in Tuzla Primary School “Center”, recently formed several different and part, the municipality has committed to artists of Banja Luka constitute the Art by donations of artists from former valuable collections 46, and enriching support the work of the Institution and Council of this specific Gallery.43 Yugoslavia. Its professional interest this its activity in different segments of art Association within existing planned gallery linked to research, presentation life until now has established several budget. It is interesting that since its International art colony was founded and evaluation of significant portraits domestic and international forms of founding in 1976, Gallery “Likum ‘76” in Počitelj in 1964. by the Association of as visual topics. During four decades visual art practice. 47 worked as a public institution in the Fine Artists of Bosnia and Herzegovina. portrait gallery has grown into a major field of culture, financed by the Federal Thousands of fine artists, and other art institution, organizing exhibitions International Studio “Ismet Mujezinović” Executive Council Fund for Culture.41 artists from a number of European and of contemporary portraits, with revue for its concept presents unique separate world countries attended the programs character, chamber retrospective art workshop that operates within the Art Gallery “Udas” in Banja Luka is a of this colony. The aforementioned exhibitions of oldest generation of International Portrait Gallery in Tuzla. unique gallery in Southeastern Europe artists donate their works (paintings, Bosnian artists, recent exhibitions Studio brings together international which provides an opportunity for prints, sculptures) for the benefit of at the “Salon Tuzla 2x13”, as well as artists, on the basis of the Open call young students of Fine Arts, emerging an extremely valuable art collection – exhibitions by young artists in the Club by Arts Council and on the basis of artists, artists with, but also without Fund of the International Art Colony Gallery.45 Expanding the boundaries of the tender competition opened across disabilities and psychophysical Počitelj. During the war (1992-1995), its activities, the Gallery of Portraits national art associations. Residence difficulties to present their artwork. the colony was devastated, and with in Tuzla in 1980. organized the first in the International studio includes a Through a number of events organized the effort and commitment of ULUBIH biennial exhibition of drawings and six-month stay and work of artists, as by the association “Udas”42 a special and the Government of the Federation, prints, the only international event well as organization of solo exhibitions place is given for arts and specific way was rebuilt in 2003. Every first Sunday in Bosnia and Herzegovina, one of of works created during their stay in of presentation for artists. Through in the month of June in the Art Colony four in former Yugoslavia. With its Tuzla.48 solo and group exhibitions organizers Počitelj artists gather at the traditional permanent and temporary activities create a network of artists in BIH and art event “Trešnjeva nedjelja” (Cherry and programs Gallery has established Art Gallery “Boris Smoje” was based the region, indicating existing barriers Sunday), and during the year the several valuable collections with strong on a concept of an architectural object for persons with disabilities, promoting Association organizes working colonies aesthetic profiles, giving to this art whose content and ambience proposed creative potentials of artists on a local, with significant interest from artists institution special importance. Each of something new and refreshing in entity, state and regional level. Galleries from Europe and the world.44 these collections present the cultural Sarajevo art offer. The original idea was prepare three permanent art projects, value of the gallery, its environment, to combine small and intimate space school of drawing and painting, art giving it in culturological sense a with dynamic gallery activity, presenting

31See more: http://www.scca.ba/ 32This collection is the backbone of a major project of establishing and building the first Museum of Contemporary Art in Sarajevo, for which construction a completed project documentation was prepared for a long time. Proposal for the museum architectural structure was designed by a worldly renowned architect and artist Renzo Piano, a goodwill ambassador for UNESCO for Project Ars Aevi. See more: www.arsaevi.ba

38 4. Models and forms of financing culture in Bosnia and Herzegovina a contemporary art in Sarajevo and Project “artStock” is the first and only The financing system of culture is At the entity level financing system Bosnia, on one side, and the space in virtual art community based on the decentralized in line with the socio- of culture in BIH is relying on several which the artists and the audience principle of membership, and devoted political situation in BIH. It can be seen at government bodies: the Federal Ministry could meed on the other side. The to the presentation and promotion several levels: at the level of Bosnia and of Culture and Sports of Bosnia and gallery is opened on February 2nd 2005, of Bosnian artists of different ideas Herzegovina (Ministry of Civil Affairs), Herzegovina, and the Ministry of presenting a charity exhibition by BIH and directions. “ArtStock” is a kind of entities (the Federation of Bosnia and Education and Culture of the Republic artists to help the Center for Hearing an internet contact training ground Herzegovina, the Republic of Srpska and of Srpska. Average share of the entity and Speech Rehabilitation Sarajevo. for those who want to discover and District Brčko), cantons (10 Federation levels of government in the financing of The gallery is named after a prominent browse the artists and creators of the cantons and 5 regions in the Republic of culture is about 3.31 euros per capita.53 theater artist and theater doyen of Bosnia art scene in Bosnia and Herzegovina. Srpska) and at the level of municipalities Speaking of a highly decentralized and Herzegovina, Boris Smoje (1920s- “ArtStock.ba” is designed primarily as and official cities of Sarajevo and East state, these results do not deviate from 1973). The Gallery has organized a directory of all categories of artists Sarajevo, Mostar and Banja Luka. the practice, but they are unfavorable numerous exhibitions, including interested in promoting their own The Ministry of Civil Affairs provides in practical terms, because all cantons exhibition “The distinctions 2005” by ideas and work. The mission of the assistance to cultural projects through and municipalities do not have sufficient Italian painter Igor Gustini, exhibition project is to become the first, essential competition in three thematic areas: economic strength to take over the “Four printmakers”, manifestation hub of information on artists and financial assistance for the the cultural financing of decentralized functions in “Student Days” and others. As one of events related to them. artStock.ba institutions in Bosnia and Herzegovina culture. its regular activities, Gallery maintains community is based on a membership with an average annual budget of about Classic Drawing School run by academic which is regionally unlimited, which 1.3 million, financial assistance for At the level of Federation of BIH the most artists. Among additional activities, it means that membership community international cooperation projects in important role in culture funding has the is certainly interesting to mention the welcomes all artists from the region and various branches of culture with about Federal Ministry of Culture and Sports, Design Team of the Gallery, which deals beyond, and yet one of the goals of this 310,000 euros, and in the end grants which on average yearly supports cultural with decoration and interior and exterior project is to support and encourage the to support non-profit organizations and projects with around 6.4 million euros, design, mural paintings, creation of establishment of cooperation between individuals (Open Call).51 Average levels or 2.78 euros per capita on Federation decorative fences, sculpture furnishing, artists and potential clients, initiating of participation in the financing of culture resident.54 It allocates funds to the regular renovating frames and with the concept mutual professional relationships, both is about 0.42 euros per capita.52 program activities through three financial and design of Plaques.49 non-profit, and commercial.50 lines: cultural heritage (20-30%), events, programs and projects of importance to

33See more: www.arsaevi.ba 34Collegium Artisticum is the cultural-art group founded at the Sarajevo Philharmonic in 1939. Its founders were the painter Vojo Dimitrijević, musician Oskar Danon, choreographer Ana Rajs and architect Jahiel Finci. Because of their political orientation in the context of criticism of the pro-fascist dictatorship of the Kingdom of Yugoslavia, Collegium Artisticum was soon banned. Collegium Artisticum is his- torically very significant because as the art group in the pre-war period brought vibrancy and dynamism in numbed culture of Sarajevo, and that lethargy we need to observe in terms of the social and political marginalization of BIH in the Kingdom of Yugoslavia. 35See more: http://www.collegium.ba/ 39 the Federation (15-20%) and transfer was at a level of around 19.000 euros). budget, at the level of the Republic of and proportion of different systems in a to civic associations in culture (5-8%), The idea behind this approach is to Srpska entity dominant is support for culture, is characterized by these two as through funds transfer services on 4 support great programs providing varied public institutions of culture (about 60- entities. In the Federation, almost an Foundations: in the field of music, visual offer in the centers of creative life, so that 80% of total assets). Another difference equal portion goes to the institutional and and performing arts, cinema, publishing other programs can function as a satellite that can be seen regarding the structure civil forms of cultural production, while and librarianship. Within the Foundation programs to a greater or lesser extent, for Music, Art and Performing Arts, Visual provide vibrancy and diversity of cultural Table 3: Financing of culture in Bosnia and Herzegovina, 2007-2011 (in euros) Arts in the overall structure of funds life in BIH in economically turbulent account for about 20-30% (on average period. about 85,000 euros), and these funds are most frequently transferred for the At the level of the Republic of Srpska organization of solo and group exhibitions funding for culture is carried out through and colonies, as the basic forms of visual the Ministry for Culture and Education arts diffusion. The financial crisis that of the Republic of Srpska, with average began in 2008 had great repercussions annual amount of about 5.78 million on the financial system of culture, as can euros, or about 4.13 euros per capita.55 be seen in terms of supported programs, There is an observable difference and available resources. For example, in between entities in the average funds 2009 and 2010 the number of supported allocated for financing of culture. As programs has been reduced by more than an illustration, in 2011 indicator of per 10 times (from 240 programs in 2007 at capita public spending on the culture in 29 in 2009, and 50 in 2011). In times the Federation of Bosnia and Herzegovina of crisis, with the lack of funds, policy was about 2.85 euros, while in the is to support programs of excellence / same year indicator for the Republic of institutions of importance to the culture Srpska was about 4.43 euros per capita. of the Federation, which has resulted in Analysis of financial instruments best Source: Review of expenditure of funds transfers 2007, 2008, 2009, 2010 and 2011. Federal Ministry of the growth of average funds per program reflects the priorities in the cultural policy Culture and Sports Federation BIH Budget for 2007-2011. http://www.fbihvlada.gov.ba/bosanski/budzet/2011/bos/Bos1.pdf; Budget of the Republic of Srpska, (e.g. in 2007 values ​​of average annual in these two entities. So, for example, 2007-2011. http://www.vladars.net/sr-SP-Cyrl/Vlada/Aktivnosti/Budzet/Pages/Splash.aspx funding for the program was around while in the Federation cultural heritage * total expenditures for culture per capita funding that is allocated through the Federal Ministry of Civil Affairs, the 8.200 euros while this indicator in 2011 is a priority with about 30% of the total Federal Ministry of Culture and Sports and Ministry of Culture and Education of the Republic of Srpska. Information on funding of culture at the cantonal level are not available.

36See more: http://romanpetrovic.ulubih.ba 37Memorial Center Srebrenica - Potočari, the Association of Mothers of Srebrenica and Žepa, Institutet for Missing Persons BIH, the Youth Initiative for Human Rights, YIHR / Fama, Cinema for Peace Foun- dation, a Video archive of Genocide, Genocide Film Library BIH and photographer Samarah. 38See more: www.Bportal.ba, U Sarajevu otvorena galerija 11/07/95, 12.07.2012. 39See more: http://ebrcko.net/o-brckom/ustanove-iz-oblasti-kulture.html 40 in the entity of the Republic of Srpska, of visual arts, especially those identified has by far the largest budget for culture both the cantonal, and local level; at the dominant sector is the institutional as part of the contemporary cultural and in BIH, the most functionally organized the cantonal level investments in culture culture, while civil initiatives, alternative symbolic production, is marginalized. systems of management in culture funds are often very small, and almost all scenes and other non-institutional actors, So, for example, from 96 events in the and adequately established legislative of the obligations in terms of financing of although in small numbers, are placed in field of culture of international character framework of cultural activities. At the culture take the municipalities. Although the field of experiment, innovation and financially supported by different levels level of administrative cities, executive this principle in administrative terms is new creative expression. of government, only few of them cover the and financing activities of culture are considered as favorable circumstance visual arts such as the Salon of drawings carried out in the Departments for in which decisions about the culture are An additional source of financing of and graphics. A similar situation exists General Administration and Social going according the “bottom-up” principle culture at the entity level in Bosnia and with the Republic of Srpska in which such Activities, while at the local level and thus are largely adapted to the needs Herzegovina are the revenues from treatment have only 6 events in the field administrative and financial affairs in of local populations, in the economically the state lottery, which represent a of visual arts (mainly art colonies). the field of culture are often performed underdeveloped areas it carries out with contemporary instrument for financing by Departments for General Affairs and it the danger that certain communities of cultural needs, as opposed to all As for the cantonal and municipal Social Activities. Connection of culture can not answer with their financial the shortcomings exposed in terms of financing of culture, there are no with other departments of municipal capacities to the cultural needs of the implementation of cultural policy in BIH. systematic data on the subject that would affairs, sometimes reflects the status that local population. In such circumstances, Every year 10% of BIH Lottery turnover is provide accurate information about the culture has in some municipalities, and transfers are necessary from higher levels distributed to the programs in the fields of financial capacity of the Cantons and municipal awareness of its developmental of government, especially towards those culture and sports, as the absolute values​​ local governments. At the cantonal level potential. So, for example, municipalities communities that are less economically of about 1 million euros for the financing operate cantonal ministries that within that treat culture as a development developed, so that the average availability of culture. This instrument of reallocation their framework besides culture, often factor of the local community, link the of cultural needs would be secured. of funds in financing of culture is applied cover administrative tasks in the fields sector of culture together with the Actuel system of distribution of financial in the Republic of Srpska, but in much of science, education and sports. Thus, economy and development (e.g. Tuzla), resources does not recognize systems of smaller financial scale (about 1-3% of within the nine cantons operate the while the municipalities that still see unification on the sector principle, except the total budget aimed for culture). Ministry of Education, Science, Sports culture as a social upgraded system or for the explicit transfers to the Brčko and Culture, while only in the Sarajevo public service, department of culture District by the Ministry of Education and As for the visual arts, their visibility in Canton of these four portfolios are associate with general administrative Culture of the Republic of Srpska and federal programs is the smallest. Except divided by the Ministry of Culture and activities (e.g. Eastern Sarajevo). It periodic transfers from the entity level in cases of support for programs of Sport and the Ministry of Education and is quite certain that there are subtle of jurdisdiction to local governments manifestational character, the majority Science. Specifically, Canton Sarajevo differences in financing of Culture in and events held in their territory. So, for

40See more: http://www.ggbihac.ba/ 41Krajičnik, N, “Usvojena inicijativa Galerije Likum ‘76”, 15.11.2011, http://www.visoko.co.ba/index.php?option=com_content&id=3693:usvojena-inicijatiba-qgalerije-likum-76q&Itemid=12, accesed on 12.07.2012. 42Program activities of the “Udas” association have a goal to imptove the quality of life persons with amputating limbs, mine victims and their complete integration in the community. In accordance with the abovementioned, Organization carries out the program activities through several fields. 43See more: http://www.udas.rs.ba/umjetnick-galerija-udas/ 41 5. Professional standards and status of artists example, the cantons participate in the From the perspective of cultural policies, In the system of higher art education education consists of Fine Arts, Music financing of culture in the range of 1.5 to the position of Visual Arts in financing of in Bosnia and Herzegovina traditional and Drama Departments, with different 3% of the total cantonal public spending, culture in BIH is not entirely based on clear visual arts can be studied at the study groups and programs that can be which is in absolute values ​​approximatelly criteria, so it is difficult to say what are Academy of Fine Arts. Until the studied within them. 150.000-250.000 euros annually. On the achievements and outcomes of the outbreak of the war in 1992, there was the other hand, the total participation funding system in this area. Apart from one art academy of its kind in BIH, the On all four mentioned academies, visual of all the cantons in financing of culture the manifestations in the field of visual Academy of Fine Arts in Sarajevo. It arts are studied mainly with traditional amounts to about 4.5% in comparison arts, events of international importance was the first public higher educational and conventional approach within three with the municipalities which account for for the Federation, and for the Republic of institution in the field of visual arts in basic art studio programs - painting, about 70% of total public expenditure for Srpska, which ensure continued financial BIH. Academy in Sarajevo is a member sculpture and graphics. In addition to culture at all levels. Such an approach in the support, it may be said that other of the University of Sarajevo, which the abovementioned, at the Sarajevo future may deepen inequality in terms of instruments of cultural policy in this area, has from its founding in the 1972, Academy are notable Departments of the average level of cultural offerings that are not sufficiently profiled or exploited. established its main tasks - organization Graphic and Product Design. On this can stand on available local population in all So, for example, purchase of works of art and execution of Studies, scientific oldest art academy in BIH, as well as municipalities. Among municipalities there is as a mode of the art market stimulation and highly artistic and creative work at the Academy of Trebinje is possible a difference in terms of financial resources, does not have continuity56, while support covering a wide scale of visual arts. to study on the so-called Educational which are redistributed for the development for the promotion and increased visibility Later, in mid 1990s, two new Academies Department. Fine Arts are studied of the cultural system, and so we can of contemporary visual arts scene occurs of Fine Arts in public universities in BIH at the University, “Džemal Bijedić” in recognize different types of municipalities: sporadically, and without a clear system were established, both based in smaller Mostar, but on the Teaching Faculty, municipalities with low financial capacity approach. This is evident from the fact cities in Herzegovina, and not in the then only with pedagogical outcome, that redirect up to 200.000 euros per year that funds for visual arts do not exceed centers of the universities themselves. becaming a professor of Fine Arts. So in the cultural sector (e.g. Eastern Ilidža), more than 1.5 to 3% of the total budget, So, in 1995 the Academy of Fine Arts it is interesting to note that only in the municipalities with high financial capacity to allocated to the entity level. It should be began the work in Trebinje, as part of field of visual art system of public higher redirect around 200.000-400.000 euros noted, that it is often difficult to get a the University of East Sarajevo, and a education in the two aforementioned per year in the cultural sector (eg, Eastern clear amount of these funds, because year later, in 1996 was established the examples is dislocated from the center Sarajevo, Travnik, Visoko), municipalities it is a program that may be component Academy of Fine Arts in Široki Brijeg, of the university and located in smaller with large financial capacity to redirect more of other art forms as its accompanying member of the University of Mostar. communities with a certain tradition than 600.000 euros per year in the cultural program. In Banja Luka in 1998. Academy of in fine arts and poorly developed sector (e.g. Tuzla, Bihać, Sarajevo Center, Art was founded at the University of university network and the system of Old city, Banja Luka, Prijedor, Bijeljina). Banja Luka. This institution of higher the art market, which has certainly a

44See more: http://pocitelj.ulubih.ba 45See more: http://galerijaportreta.ba 46The Collection of contemporary portraits of the 19th and 20th centuries, a Collection of drawings, watercolors, tempera and oil by Ismet Mujezinović, a Collection of drawings, prints and oil by Adela Behr Vukić, Haim Džejms Pinto Legacy Collection, an International Collection of portraits - drawings and prints, a Collection of contemporary BIH art, Collection of artists from Tuzla and Collection of School in Kassel. 47Quadrennial of contemporary portraits, Salon 13, Salon 2x13 Tuzla, Interbifep, Gallery Club, International Studio “Ismet Mujezinović”, retrospectives of the artists from Tuzla and Tuzla Days of Murals. 48See more: http://galerijaportreta.ba/atelje.htm 42 significant impact on specificity of the are usually designed on classical some universities are not using a is the oldest art school in Bosnia and study and teaching processes in these methods of studying fine arts and more developed educational and one of the oldest of its kind in the degree programs. classical knowledge gained this way other infrastructure, formed for the region. Since 1945 it has obtained the is often difficult to translate into a study programs of art production and outlines of an art school of applied arts From the comparative analysis of these modern context. In this sense we can management in the culture in order to in its current form, and now it covers study programs it is easy to conclude also notice the absence of classes that develop cooperation, and provide to six areas: applied art, applied statuary, that their curriculums and syllabuses would enable students to more easily the students of visual art this important metal forming, textile design, visual are almost always uniform. They cope and behave in the art market. element in their artistic education.57 As and graphic design and illustration correspond to the greatest extent to Such courses are not present on the possible encouragement can be used of books and advertising graphics. one another in the titles of courses, list of the reformed study programs the fact that the management in culture The idea for the establishment of an their presence and their dispersion of the first and second cycle, not even in the last few years can be studied institution for the training of personnel within the overall curriculum. Classes as election courses. Unfortunately, within the separate study programs at in the field of Fine Arts in Bihać dates Universities in Sarajevo, Tuzla, Zenica back to the 1960s. After a series of Table 4: Educational institutions in the field of art in Bosnia and Herzegovina, 2012. and Banja Luka. At the Department attempts to implement the idea, finally for Production at the Academy of it happened in 1995 with the School of Drama Arts (theater, film, radio and Applied Arts. Then the first generation television) of the University of Tuzla, of students was enrolled at the students while teaching the fourth year Department of Fine Arts Technicians of undergraduate studies are required of Applied Arts. In addition to this, in to take the course in visual arts 1999 was founded the Department productions (Fine arts and Galleries). A of Graphic Design. School each year similar impression can be gained with arranges a very important final annual an insight into the network of private exhibition of students’ work, claiming universities that are creating higher that as far as once was difficult to education of visual arts on modern convince the relevant circles in the principles and methods, primarily in the justification of a school, this decision field of design. Speaking of the system is every year confirmed as reasonable, of art education in BIH it is hard to avoid with exhibitions as evidences of that art schools of applied arts, primarily justification. Upon completion of High * the year of foundation of former Educational Academy in Mostar ones in Sarajevo and Bihać. Sarajevo Schools of applied arts, statistics

49See more: http://www.artstock.ba/default.wbsp?p=20 50See more: www.artStock.ba 51Source: Ministry of Civil Affairs, Public Calls 2010, 2011 i 2012. http://www.mcp.gov.ba/konkursi/Archive.aspx?template_id=19&pageIndex=1 52Average annual funding in the period 2007-2011, and calculated values per capita values 53Average annual participation in the 2007-2011, per capita quantities are calculated at the level of the total BIH population. 43 show that the majority of students still has a significant and noticeable role associations of artists, in different the first President of the Association continue their education in the field in the system of visual arts in the country, forms and at different levels and (after whom was named the prominent of fine arts, usually applying at one of especially in major cities such as Sarajevo, completely uncoordinated. Although, Gallery of the Association in Sarajevo). Bosnian Academies of Fine Arts, at all Zenica, Tuzla, Mostar, and substantially in when registering most of them often The Association of Artists in BIH today art departments. Banja Luka. It is worth noting and recalling cite goals that should affirm specific art is a nongovernmental organization that numerous professional associations activity and work on the development and professional association whose Due to the complex administrative of artists in social systems more developed and advancement of individual artistic members are professional artists of structure of the country and dispersed then in BIH act alone or in cooperation with profession and the conditions of Bosnia and Herzegovina. The task system of cultural policy in Bosnia, other art associations in order to assist contemporary art production, the of the Association is based on the professional organization of artists are artists, to find the best ways to get them analysis shows that they are often provisions of the Articles of Association mainly reduced to lower administrative closer to the labor market and that same set up to create a new production to assist its members to resolve their levels at which the current system can market closer to them, providing them frameworks and forms which will status, existential and social needs and exert certain influences and within with information about job opportunities, enable a possibility to produce and participation in the creation and the the framework of which such an art engagement and trainings, advocating realize non-institutional art projects, overall artistic, cultural and public life organization has a greater meaning. their rights, providing legal assistance often commercial in nature. And again, of Bosnia and Herzegovina. Members Such a situation is particularly evident and professional, legal, health and in the realization of such projects are of ULUBIH are artists from all artistic in the so-called collective arts that social benefits to their members. These often invited to take part just artists fields, professors and lecturers at directly depend on the state aid. This organizations aim to negotiate the employed by public institutions or the the Art Academy in Sarajevo, Široki is primarily related to the performing minimum conditions of employment for school system. Brijeg and Banja Luka, as well as at arts and numerous associations of their members in the creative industries, art schools in the country and abroad. Drama Art, and on the network of as well as ensuring compliance with Within the analysis of the art market The procedure for the election of the public cultural institutions as well, that the conditions of social and economic special attention certainly deserve two president, members of the management still have a dominant role in the cultural changes in society. These and such oldest and most important professional and supervisory boards, Arts Council, sector in BIH. In this sense, central objectives are often verbally articulated associations of artists in BIH, both Board of the International Art Colony state associations of artists almost do in programs and statutes of most Bosnian located in Sarajevo. Association of Počitelj and Court of Honor, and the not exist, or operate with significantly artistic associations, but the question Artists of then Socialist Republic of system of proposals and voting is reduced impact and significance. remains how they can be implemented in Bosnia and Herzegovina was founded conducted by the Assembly, consisted In the visual arts, the situation is a disjointed decision-making system and in 1947, on the initiative and efforts of of all members of the Association. slightly different, so that the former decentralized model of the cultural policy the well-known and recognized artists Since the founding until today this Republican Central Association of Fine in BIH. of Bosnia and Herzegovina. Famous association and its members participated and Applied Arts, based in Sarajevo, In Bosnia today exists several painter Roman Petrović was elected as in all major art festivals in BIH and abroad.

54The amount represents the average annual funds allocated for the period 2007-2011. 55The amount represents the average annual funds allocated for the period 2007-2011.

44 Besides the Secretary of the Association authors also creatively intervene in many Month of Photography in Ljubljana, a monograph “Design in Bosnia and and one technical person, no member of materials, media and design fields. Some Icograda, Icsid Design Week ...), organizes Herzegovina”, a publishing project that is administration or management bodies of of these areas have progressed quickly and publishing, educational, exhibition very interesting from the point of view of Association for their work receives any successfully participate in contemporary and service activities; encourages Bosnian art history59. compensation58. trends. First of all graphic design, with the international art action in the country widest horizon and scope, in particular and the presence of its members abroad; Association of Artists in the Federation The Association of Artists of Applied Arts through design in a function of cultural presents awards as an incentive for fine exists in those cantonal levels in which of Bosnia and Herzegovina (ULUPUBIH) events and artistic trends. Autonomy arts and public affirmation of works of there is larger number of artists and since its establishment in 1965 has and the independence of Bosnia and applied art, and collects and systematizes tradition in fine arts (e.g. Association gathered and promoted the most creative Herzegovina have been reflected in the information about the art achievements of Artists of Una-Sana Canton, Tuzla, and successful artists in the field of graphic art of design strongly. During the war of its members. Thus, this association Zenica-Doboj Canton, ...). In the Republic and product design, art photography, art (1992-1995), Association was working organizes each year the annual exhibition of Srpska act professional associations direction, costume design, art metalwork, as a professional organization, but its “Collegium Artisticum” and since its of music, drama, multimedia artists and textiles and other materials, ceramics, members were extremely creatively beggining, in the 1960s promotes the entertainers, but there is no information interior design, architecture, illustrations engaged and present. After the war, in works of its members. In this sense, about the Association of Artists at and cartoons. The internal structure of the the middle of 1996, this association from every field are awarded prizes and the entity level, at least not about the specific areas has changed over the time, has renewed its work. The need for most successful works of its members Association that is active and present reflecting social, cultural, technological, continuity in the conditions of post-war and GrandPrix of the Association is in public. In certain municipalities in BIH economic and other changes of art in confusion demanded the restoration of presented to one work from all sections. also operate local associations of artists shaping of the modern society. Several the old name - ULUPUBIH. International ULUPUBIH members are professors at (Bihać, Visoko …). socio-economic parameters were crucial design organizations have recognized the High School of Arts, Art Academies, to the structure of the Association and this continuity, and gave impetus to the Faculty of Architecture in Sarajevo and in Regarding the financial situation of the the different dynamics of various fields development of art design in Bosnia and other educational institutions with design above-mentioned associations, it is of design. Number of designers was not Herzegovina. in their curriculums and programs, and illustrative to mention the fact that the enough to form special associations, for many of them teach at universities in the Federal Ministry of Culture and Sports in instance for art direction, costume design, ULUPUBIH today participates in the world. It is interesting that younger artists 2010 had separated about four million photography, and so in the association preparation of laws and other regulations of applied arts and designers of the new BAM for the financing of cultural and were placed art disciplines that are not in the visual arts of Applied Arts, generation now form the essence of the sports events, of which only 2.500 euros primarily from the design field. It turned organizes concerts, exhibitions and other program, assuming the functions and were aimed for fine arts through the work out that such a concept can function quite programs of applied art and design in the duties in the Association. Association of the Association.60 well in the present moment, when the country and abroad (Collegium artisticum, as part of its publishing activities issued

56Purchase was implemented only in 2008 with total assets of 68.000 euros 57At the Faculty of Fine Arts at the University of Montenegro in Cetinje, students of all academic programs at the undergraduate level as a mandatory course have Portfolio in which they gain knowledge about the promotion and presentation of their own work of art. At the master’s level is studied Management in Culture, as a mandatory two-semester course in order to introduce students to the principles and specifics of the art market and the behavior of the artist in this framework. 45 5.1. Participation in culture

So far in BIH have not been conducted are visits to theaters and visual arts the distribution and availability of these also interesting and also confirmed that systematic researches on cultural facilities, which 70% of citizens does products to the end user (e.g. extensive attendance is significantly lower than it was needs and habits of the citizens, and not visit during the year, while the network of galleries), efficient techniques assessed empirically, although we should the levels of participation in culture most popular activities are visits to the and animation programs, although a bear in mind a number of visual programs and cultural needs of the citizens, and cinema, and at least once a month 16% significant factor is found in the economic that take place in cultural centers, which their views on this issue, can not offer of citizens go the cinemas61 . From the nature (price of an artwork). Factor of are not covered by this form of statistical complete conclusions. Some empirical perspective of the official statistics, economic strength has significantly smaller reports. So, for example, in population of studies show that the majority of about 5.5% of the population visited impact in the field of visual arts, where in BIH 1.000, 43 visited annually visual programs citizens of Bosnia and Herzegovina the Gallery and the contemporary visual (as in most countries in the region) programs in the galleries, which makes an average of (82%) their free time mostly spend with art event at least once a year, which are free to the public. Therefore, special about 620 visitors per program during the the family and friends, indicating as indicates that it is the least popular attention is drawn to a very low interest year (Review 1). dominant informal channels of cultural cultural activity. In a broader sense in the visual arts program, whose causes dissemination and confirming values, (including museums exhibition activity), must be sought in a very poor animation On the other hand, economic power has the while on the other side it is important this fraction reaches value of 7,5%. techniques, as well as the inner circle of most important role in the determination to note the lack of cultural habits in the the audience that is created around the of the volume of artworks purchases. segment of the institutional culture. At Trend of consumption and participation program of this kind. From the perspective According to the latest available data, the bottom of the list of their interests in various segments of the population for of the official data on attendance of the average expenditure for culture and in the sphere of institutional culture the most part of culture is influenced by visual arts programs, the results are leisure per capita on an annual basis was

Review 1: Average attendace of gallery programs, 2006-2010.* Table 5: Attendace of cultural programs in BIH, 2006-2010. Attendance per program

. 608

. 697

. 540

. 729

. 682 Source: Kultura i umetnost (2010), The Agency for Statistics of Bosnia and Herzegovina (BHAS); Statistical Yearbook BH (2011) The Federal Bureau of Statistics *number of users **only Federation BIH *only Federation BIH

58See more: www.ulubih.ba (accessed n 03.08.2012) 59See more: www.ulupubih.com.ba (accessed on 03.08.2012) 60Lingo, M. (2011) Za likovnu umjetnost samo 5.000 maraka, Dnevni avaz, Sarajevo, 1.2.2011.

46 in 2009. around 153 euros, and in recent the population in rural and urban areas. month for culture, and the results for the BIH). Although this is preliminary data, it years it has also grown at an average annual Particularly worrisome is the position of the Republic of Srpska are for 20% lower, below shows an apparent decline in household rate of 4.8%. For example, in 2004 average most vulnerable groups of the population the average indicators for the Federation, spending in 2011, at the level of the total expenditure on culture per capita in BIH who have limited economic capacity to meet and for the Brčko District even 34% lower annual consumption (19%), and at the level amounted to about 132 euros per year, their cultural needs (expenses for these than the average for the country. These of expenditures for culture that is almost while in 2009, this amount increased to purposes amounted to about 3.5 euros data correspond to the distribution of the halved. 158 euros. In contrast to this slight increase, per month for households living in urban economic power of citizens of Bosnia and unsustainable market for culture in general is areas, and about 1.68 euros per month for Herzegovina, as well as to the tendency of Most of cultural system actors only partially still evident, and especially for the Visual Arts, members of households in rural areas ), and impoverished middle class in BIH. There has designed primary contacts with the public and potential trades possible on the market. in the subsequent period, particular attention are differences in terms of expenditures for (web sites, info portals etc), but the state of should be paid to issues of inclusion in the culture between urban and rural territorial cultural expenditure indicates that existing Expenditures for cultural purposes, on cultural life of marginalized social groups.62 units. So, the population in urban areas level of communication with the public is average, account for about 4.8% of the Longitudinal section of the level of spending spends on average around 13 euros per not sufficient, and specialized channels total expenditures of households, with the on culture in BIH shows that most people month, per household member for culture, of communication that would enable wide obvious difference in the consumption of spend in the range of 9.8 to 12 euros per while the rural population for this purpose availability of information on artworks and takes around 6.3 million euros (about 35% art contents are missing, as well as creative

Table 5: Average expenditure in culture in BIH, 2005-2011. (in euros) lower energy consumption than the average ways of reaching out to the audience.

Total year household Cultural expenditure Average year expenditure (per in total household expenditure for culture Review 2: The share of expenditures for culture, recreation and leisure time in the total expenditure of households in household) expenditure % per household BIH, monthly percentage (%)

Source: calculation based on Household Budget Survey in BiH in 2007 and 2011. (Preliminary data), the Agency for Statistics of Bosnia and Herzegovina (BHAS), Announcement no. 3 of 24.09.2010. (Experimental data), the Agency for Statistics (2005-2009). Source: Survey of Household Consumption in Bosnia in 2004 and 2007, the Agency for Statistics of Bosnia and Herzegovina (BHAS).

61Empirical data on the cultural habits and lifestyles of BIH citizens is collected for the survey commissioned as part of the standard set of questions about leisure time of respondents, conducted by the Center for Market Research, GFK, Bosnia and Herzegovina (www.gfk.ba). Given GFK policy that prohibits publishing of this data (GFK letter, 8/17/2012), findings on cultural styles and their interpretations are based on data taken from the article: How BiH citizens use their free time, http:/ / portal.mladi.info / index.php? type = 1 & s = news & id = 1201 (accessed, July 2012). Considering that attitudes and habits of citizens in their free time and culture slowly change, we believe that these studies are relevant regarding the participation in the field of visual arts. 47 6. Corporate sector and art market

In one of the few analyzes dealing with in the total absence of the system painting or object that has artistic value. aesthetic value and provenance. corporate and individual support for support, closure of cultural institutions Better acquainted with the situation in According to the indicators of this visual arts in BiH, it is concluded that and shutdown of manifestations due to the local art market, argue that in BIH museum, art buyers are mostly coming entrepreneurs and business people, the lack of funding. The economic crisis there is practically no market of valuable from the “middle class.” Economic due to the economic crisis, are less is first reflected precisely in the arts and works of art that could be remotely in crisis in BIH undoubtedly affects the sensitive to the culture and needs of cultural sector. Reduced public budgets the level of world standards. However, purchasing power of those who want to artists in their creative process. In a affect decreasing number of people who although the number of those who have buy art. brief introduction, this analysis offers directly or indirectly support the arts and the opportunity to buy some valuable a review of the historical background of creativity. As one of the few businesses art objects is negligible, collectors and Thus, the most expensive painting a system support provided for arts by that BIH artists mentioned in this study those who see art as a good investment to be bought in the showroom of the individuals and organizations, noting as someone who is financially supporting in times of crisis there are still in Museum of Contemporary Art in Banja that in Bosnia and Herzegovina there the arts, is the construction company Bosnia, as well as works of art worthy Luka, oil on canvas by Mihajlo Nikolić, are individuals in different historical from Gračanica, near Tuzla. Although of investment. Curator of the Museum costs around 2.250 euros, but, curator periods who wanted to preserve its its owner is a great admirer of the works of Contemporary Art of Republic of Perduv-Misirlić points out that despite culture and art, and their names are by Safet Zec and Mersad Berber, the Srpska Ljiljana Perduv-Misirlić believes its relatively low price, there are only without doubt an integral part of the company has once acquired artworks by that in BIH circumstances, price of an few of those who have the money to country’s cultural history. In this sense, many other Bosnian artists.64 artwork is formed by an artist, on one purchase this artwork.66 the author emphasizes the character side and curator on the other side. She and work of publicist Zulfikarpašić as Even the daily newspaper Glas Srpske says that the most important thing for In the larger BIH centers, primarily in one of the most famous contemporary from Banja Lika tried to investigate the the Museum of Contemporary Art of Sarajevo, in recent years, there is an art patrons in BIH. In fact, after his death, state of the art market in BIH65. The the Republic of Srpska is to have no interesting phenomenon that some Institute founded by Zulfirkapašić article notes that in the time before contact with the works without any larger companies in their premises open remained a gathering place for Bosnian and after the economic crisis that hit artistic merits, and certainly not with gallery spaces allowing the artists, artists and the space in which every the global economy in 2008, more the works of dubious provenance. In the mostly younger ones, to exhibit their day, in addition to exhibitions, hosts and more experts advised long term exhibition halls of this public cultural works of art. In this sense, “Raiffeisen round tables, promotions, concerts and investment in valuable works of art as institution founded by the Republic of Gallery” in Sarajevo, on the art market other forms of art diffusion. 63 worth-while. Although in the world, not Srpska, citizens use to bring art works of Bosnia and Herzegovina certainly only collectors but all those who can from private reasons, choosing to waive presents specific merger of art and Despite these and such examples, BIH afford it, buy valuable works of art, in their family’s treasure. Perduv-Misirlić BIH banking. This unique project was culture and contemporary art production BIH are still rare individuals who would emphasizes that works of art for implemented in cooperation with the continued to report daily losses, reflected separate a lot of money for a valuable commission sales must be of approved Academy of Fine Arts in Sarajevo,

62Data and trends regarding the movement of household consumption were analyzed on the basis of data on consumer spending presented in the Survey on consumption of BIH population in 2004, the Ministry of Civil Affairs (2008) Strategy of Cultural Policy of Bosnia and Herzegovina, the Ministry of Civil Affairs, Sarajevo - Statistical annex.

48 the oldest educational institution of of the most successful students of owned by the ASA Group. Unlike the material necessary for the organization its kind in Bosnia and Herzegovina. Academy in the newly formed Gallery, aforementioned sales gallery that of the exhibition. What the company Memorandum of Cooperation was on one hand, and annual awards of the was created as a collaborative effort expects from an artist, is that the artist signed in late 2009. The Academy Academy’s most successful students between an art academy and the bank, leave to the gallery a work of art of of Fine Arts in Sarajevo and named with money rewards, on the other hand. in this space the opportunity to exhibit its own choice. In this way, they try to Bank have agreed to help each other So financial support was provided in is given to the established authors establish their own art collection, and to in order to promote and strengthen the amount of 500 euros for the top as well. ASA Art Gallery is part of the be able one day to organize an auction arts and to affirm the best students five students in 2009. and six best social responsibility program of the of art works, which would collect funds of Fine Arts. The basic idea of ​​the students from the Academy in 2010. ASA Group and operates under the for the Hastor Foundation.68 project was to provide opportunities for Award-winning students were from all program Good Neighbor. The program young and emerging artists to present departments and programs: graphic gives priority to young and ambitious A similar case presents the social their work to the public. On the Bank’s design, applied art, graphics, education professionals whose ideas and visions responsibility policy of one of the largest official website, project is presented department, painting, product design ASA Group strives to support. With BIH companies Aluminium from Mostar, in the following way: “In spite of all the and sculpture. Students who exhibit the foundation of ASA art galleries, the that invests significant resources in difficulties facing the institutions and their work in the Raiffeisen Gallery company ASA has opened its doors to upgrading of the cultural and artistic culture projects over the years, the space are directly elected as teaching young and emerging artists from BIH. life of Mostar, but also in the broader role of culture in the survival and life of professors of the Academy of Fine Arts The goal is to provide them with an area as well, thereby supporting the city of Sarajevo and its citizens, is in Sarajevo. By mid 2012. in the Gallery opportunity to present their work to the visual, music, theater and other inseparable from the desire of the city was presented over 20 students the general public through exhibitions. artists. The company also owns two to be in touch and in context of the in group, and three in individual The gallery is positioned in the lighted spaces arranged and adapted for such contemporary cultural realities.” For exhibitions. First exhibition was part and busy part of the administration purposes, Gallery and Club. Gallery this reason, it is further stated that of a group exhibition of student works building and provides an opportunity “Aluminum” presents highly equipped the bank wants to support projects presented for the Day of the Academy for artists to once again play with the and impeccably designed art space in culture, and thus contribute to the in 2009. It was followed by exhibitions sunlight and space. In addition, the in the cultural center of Herzegovina, cultural reality where” artists would not of prints, posters, sculptures, and gallery is the perfect place to organize which combines traditional and new. It feel alone.”67 a new group exhibition of students. informational and educational meetings is a remarkably well designed gallery, Raiffeisen Gallery in Sarajevo has a and workshops. ASA lends the space adjusted for all possible exhibitions This kind of cooperation of one BIH selling character as well. of art galleries to artists for free, and of painting, drawing, graphics and Arts Academy and one of the leading in addition they are often supported sculpture. So far significant sculptors, banks on the market of Bosnia and Definitely worth mentioning is ASA by the company,with printing costs for painters and graphic artists were Herzegovina implies presentation ars art gallery on the premises and catalogs, invitations, posters, and other presented, along with a large number of

63Redžepagić, A. (2011) Sve manje bogatih pokrovitelja umjetnosti, Dnevni avaz (Kultura), Sarajevo, http://www.dnevniavaz.ba/lifestyle/kultura/39681-sve-manje-bogatih-pokrovitelja-umjetnosti.html (accessed on 11.06.2012) 64Ibidem http://www.dnevniavaz.ba/lifestyle/kultura/39681-sve-manje-bogatih-pokrovitelja-umjetnosti.html (access, 11.06.2012) 65Jokić, S. (2012) Platna u boji najbolja investicija, Glas Srpske, Banja Luka, 30.1.2012.

49 7. Developmental implications of the current cultural policy in the sphere of the art market visitors and significant media attention. The main strengths of the art scene and • Established democratic forms • Lack of a single national body for It is certainly very important to mention market in BIH: of financing of the culture, that culture for the implementation of that, by buying certain number of works • Existing art infrastructure (network may be challenged in the future, international standards and norms, of art, after each show, this company is of cultural institutions - galleries improved and upgraded in order lack of a unique address to apply one of few in BIH that has managed to and museums, the educational to meet more efficiently the needs for European and global funds create its own art collection by authors system of visual arts, art studios’ of the cultural system of BIH; and international cultural and art from Bosnia and Herzegovina and network and significant number of programs; European countries. Gallery “Aluminum” multi-functional spaces); The main weaknesses and threats: • Elemental management of cultural cooperates with the Franciscan gallery • Employees of cultural institutions, • Significantly reduced level of policy in certain areas, the lack in Široki Brijeg and with the Academy of primarily in the existing network competence of professional bodies of researches in the domain of Fine Arts at the University of Mostar.69 of museums and galleries, with and departments for culture in cultural practice, which prevents significant professional training dispersed cultural and political the conduct of cultural policy based and experience; system of the country; on facts; • Significant number of well known • Insufficient capacity (human, • Generally written strategy of and emerging young artists active organizational, and financial) to cultural policy in BIH; absence of in the creative sector, with or perform administrative tasks in the instruments for the application of without formal training in the field culture at all levels of management the Strategy and the Action Plan; of fine arts; in culture; • Lack of effective planning approach • Large number of higher education • Lack of sustainable funding system at the level of government, the institutions with Fine Arts study over the long period for a large public, civil society and the private programs, in all parts of the country; number of actors on the art market, sector on the basis of which would • Significant concentrations of insufficient involvement of relevant be established in the long term relevant actors in the civil sector actors in the cultural use of the stable relations and opened up who actively participate in the financial potentionals of economics possibilities for long-term planning creation of cultural and art offer of for cultural purposes; and development of specific BIH; • Absence of the umbrella programs and events; • Rich collection of accumulated cultural law on museum and gallery • Low level networking of cultural assets from the previous periods, activities, with a few uneven institutions at the local, regional, in and out of institutions that could and mismatched legislations at and international level entity, the improve the overall art and cultural the entity and cantonal levels; lack of cooperation between the offer of Bosnia and Herzegovina; public, civil society and the private

66Statements taken from: Jokić, S. (2012) Platna u boji najbolja investicija, Glas Srpske, Banja Luka, 30.1.2012. http://www.glassrpske.com/plus/teme/Platna-u-boji-najbolja-investicija/lat/69581.html, (accessed on 11.06.2012) 67www.raiffeisenbank.ba/bhs/menu/view/408 acces on 24.07.2012 68Consultations with Zukić, M. in charge for coporative communications, ASA Group, Sarajevo, www.asa.ba (July, 2012) 69See more: www.aluminij.ba/node/45/Aluminij (access 03.08.2012.) 50 REFERENCE:

sector in culture, poor relationship Agencija za statistiku Bosne i 30.1.2012. http://www.glassrpske. 1/94, 13/97, 16/02, 22/02, 52/02, with the cultural institutions, Hercegovine (2007) Anketa o potrošnji com/plus/teme/Platna-u-boji-najbolja- 63/03, 9/04, 20/04, 33/04, 71/05, educational institutions, tourist domaćinstava u BiH , Agencija za investicija/lat/69581.html (pristup, 72/05 i 88/08 , poglavlje III. čl. 4. st. organizations, etc; indifference of statistiku Bosne i Hercegovine 11.06.2012) 1. al. c. cultural actors to cooperate. Agencija za statistiku Bosne i Lingo, M. (2011) Za likovnu umjetnost Ustav Republike Srpske, „Službeni • Reduction of the price of admission, Hercegovine (2004) Anketa o potrošnji samo 5.000 maraka, Dnevni avaz, Glasnik RS“, br. 48/94 I 11/98. due to worsening financial position domaćinstava u BiH , Agencija za Sarajevo, 1.2.2011. Veće ministarsta BiH-Ministarstvo civil- of the audience; statistiku Bosne i Hercegovine Portal Mladi Info (2012) Kako gradjani nih poslova (2008) Strategija kulturne • Risk of potential closure of certain Agencija za statistiku Bosne i Her- BiH koriste svoje slobodno vreme, Portal politike u BiH, Veće ministara BiH-Mini- cultural institutions due to the poor cegovine (2010) Saopštenje br. 3 od mladi Info http://portal.mladi.info/ starstvo civilnih poslova. economic situation and a significant 24.09.2010. Agencija za statistiku index.php?type=1&a=vijesti&id=1201 Zakon o arhivskoj djelatnosti („Službeni reduction in funding of employees Bosne i Hercegovine (BHAS) (pristup, juli 2012). glasnik RS“, br. 119/08) in the public sector. Agencija za statistiku Bosne i Her- Pravilnik o sadržaju i načinu vođenja Zakon o bibliotečkoj djelatnosti cegovine (2011) Kultura i umetnost ulazne i izlazne knjige, knjige inventara, („Službeni glasnik RS“, br. 52/01, 2010, Agencija za statistiku Bosne i knjige poklona, kartoteke i fototeke 39/03 i 112/08) Hercegovine (BHAS) muzejskog materijala (“Sl. list RBiH“, br. Zakon o estradnoj djelatnosti („Službeni Charles Landry (2002) Cultural Policy 2/94) Glasnik RS“, br. 46/04 i 106/09) in Bosnia and Hercegovina: Expert Re- Pravilnik o stručnim zvanjima, uslovima Zakon o izdavačkoj djelatnosti port, MOSAIC PROJECT, Council of i načinu sticanja stručnih zvanja u („Službeni glasnik RS“ br. 46/04) Europe, CDCULT(2002)17B, 10 Sep- muzejskoj djelatnosti (“Sl. list RBiH“, br. Zakon o kinematografiji („Službeni tember 2002. 2/94) glasnik RS“, br. 37/09) Copf, A. (2011) „Kultura u statusu quo“ Redžepagić, A. (2011) Sve manje Zakon o kulturnim dobrima („Službeni niko nije kriv, a ništa ne valja, BIRN, bogatih pokrovitelja umjetnosti, Dnevni glasnik RS“, br. 11/95 i 103/08). Balkanska inicijativa za kulturnu surad- avaz (Kultura), Sarajevo, 11.6.2011. Zakon o muzejskoj djelatnosti („Službeni nju, razmjenu i razvoj – BICCED, 9. juli Stolačka deklaracija o kulturi u Bosni glasnik RS“, br. 89/08) 2011. (pristup maj 2012). i Hercegovini http://www.sff.ba/news/ Zakon o pozorišnoj djelatnosti („Službeni Federalni zavod za statistiku (2011) show/id/672/culture/ba?symfony=b7 glasnik RS“, br. 25/02 i 109/11) Statistički godišnjak BiH, Federalni za- 4cbe8a383abf0d14536e307c7811 Zakona o ministarstvima i drugim vod za statistiku ef (pristup maj 2012). tijelima uprave BiH „Službeni glasnik Jokić, S. (2012) Platna u boji najbolja Ustav Federacije Bosne i Hercegovine BiH“, br. 5/03, 42/03, 26/04, 42/04, investicija, Glas Srpske, Banja Luka, „Službene novine Federacije BiH“ br. 45/06, 88/07, 35/09, 59/09 i 103/09)

51 WEBOGRAPHY

Zakonu o izvršnoj vlasti Brčko distriktu Agencija za statistiku Bosne i Herce- BiH (“Službeni glasnik Brčko distrikta govine http://www.bhas.ba BiH”, broj: 2/00, 9/01, 12/01, 16/01, ASA Group, www.asa.ba 17/02, 8/03, 14/03, 31/04 i 40/05) Federalni zavod za statistiku http:// Pravilnik o uslovima za osnivanje i www.fzs.ba početak obavljanja djelatnosti muzeja i GFK www.gfk.ba galerija (“Sl. list RBiH“, br. 2/94) Ministarstvo civilnih poslova Bosne i Hercegovine http://www.mcp.gov.ba Ministarstvo prosvete i sporta Feder- acije Bosne i Hercegovine www.fmksa. com Ministarstvo prosvete i kulture Repub- like Srpske http://www.vladars.net Republički zavod za statistiku Repub- like Srpske http://www.rzs.rs.ba Vlada Federacije Bosne i Hercegovine http://www.fbihvlada.gov.ba Vlada Republike Srpske http://www. vladars.net Međunarodna umetnička kolonija Počinitelj http://pocitelj.ulubih.ba Projekat artStock.ba www.artStock.ba Lex Specialis Law & Legal Definition. Legal Definitions. USLegal, Inc., http:// definitions.uslegal.com/l/lex-specialis

52 Daniela Angelina Jelinčić, PhD and Ana Žuvela, M.A. ARTS MARKET IN CROATIA Institute for International relations, Zagreb UDK: 304 (497.5); 330/111

SUMMARY: Introduction

It is questionable if arts market in Artists in Croatia find it very hard to specialized in visual arts, private sector artwork. Still, studies like “Zagreb as Croatia can be called the real market play the game without the rules. This is art galleries and individual artists. a Cultural Product” show that the level since most of transactions are made the reason why only a small number of of perception in the international arena in the so called grey zone. Cultural them can live from their art work.1 Although the situation surrounding is not proportional to full potentials policy does not have clear guidelines arts market in Croatia has somewhat Croatian visual arts scene has. Private in this field which is also reflected in The meaning, position, relevance and improved during the last ten years, it initiatives, which could put the country the bad legal harmonization. Although role or arts market in Croatia are very is still far from the framework in which on the international arts market, are public financing is provided from the ambiguous concepts; research into Western Europe’s gallery sector and scarce while the public cultural sector national but also regional and local the topic is repeatedly confronted with visual artists work. In the words of has little if any regard for developing level, awarded funds are not sufficient. the question if there is an actual arts Tihomir Milovac, the curator of the its influence in the arts market system. Stronger initiatives in the private market, how does it function, what are Museum of Contemporary Arts in Based on negative experiences with sector are also lacking as well as the the rules of that market, how detached Zagreb, “in the Central and Eastern commercial effects greatly influencing system of auction houses. Education or attached it is to the complete arts European countries (the EU members), quality of museums’ and galleries’ in this field is rather good but lacks scene in the country, how does it reflect the situation is not much better than policies, Western European public entrepreneurial aspects. The greatest the trends and dynamics of the arts in in Croatia, but there is the greater visual arts scene, museums, non- number of institutional infrastructure Croatia, what are the key parts of the impact of the market which influences profit galleries and alike, make an is in the capital city of Zagreb and so is arts market infrastructure. Attempts to the development of private galleries, effort to place market authority over the great share of public finances. This answer these questions were hindered private foundations and collections”. their planning and programming within is reflected in the strong centralization by the chronic lack of data on market On the other hand, public visual arts limitations. But in Croatia, due to weak of the visual arts sector. Opportunities movements in the arts (generally, sector in Croatia has been trying to economic power and general lack of offered by the EU accession are not arts and culture are one of the areas achieve more important position in the art buyers, lack of private initiatives related only to the greater finances marginal to the national statistical region; namely, with the opening of the for commercial galleries openings and but, parallel to the clear national categories or are introduced as a greatest public investment in culture due to traditional practice of buying policy, to the possibilities of the sector novelty, an exception rather than a rule). since the national independence, the art directly from artists, a stronger arts restructuring. In such circumstances, research had Museum of Contemporary Art, Zagreb market is yet to be established. to be based on the attainable sources has reached the status of the regional Keywords: arts market, cultural policy, and selected parts of Croatian cultural visual arts center. Public non-profit visual arts, fine arts, freelance artist, infrastructure that can be defined as sector fulfills its mission quite well art gallery, visual art institutions, important actors of the arts market with numerous museum and gallery independent art scene, cultural cycle: public visual arts institutions, institutions systematically working entrepreneurship, visual arts education independent arts organizations on presenting visual artists and

1From the interview with Vanja Žanko, Chief Curator in LAUBA. Interview available at http://pogledaj.to/art/danas-je-nemoguce-zivjeti-kao-umjetnik-genij-izoliran-od-svijeta-i-baviti-se-uspit-artom/, accessed on 20.05.2012. 2http://www.culturalpolicies.net/web/croatia.php?aid=21, accessed on 08.05.2012.

53 1. Cultural policy and arts market development 1.1. Cultural policy and visual arts

The general objectives of the national The best indication of cultural policy inclusion “National Report on Cultural Policy of is operationally implied and used by the policy include the pursuance of values and treatment of arts market is the fact the Republic of Croatia” from 1998 Croatian Freelance Artists’ Association, such as: cultural pluralism (aesthetic and that arts market, as syntagma, cannot be brings the key question of visual arts an organisation that encourages and multiethnic), creative autonomy, the increase found in any of the official cultural policy treatment in the cultural policy which promotes creative work and public and diversification of sources for financing documents, starting from the Council of is the issue of making a distinction activity in culture and the arts (Council culture, polycentric cultural development, Europe’s “National Report on Cultural Policy between basic definitions of the field in of Europe, 1998: 128). It represents encouraging cultural participation as a new of the Republic of Croatia” (Ministry of the applicable legislation. To be precise, freelance artists’ common interests, so quality of life and co-operation between the Culture of the Republic of Croatia, 1998), Law on the Rights of Freelance Artists as to help them achieve their goals and public and the private sector to increase national strategic document from 2001, and Encouraging Cultural Creativity to protect their rights. A freelance artist efficiency, quality, employment and “Croatia in the 21st century: Strategy of (NN 43/96) does not introduce widely becomes a member of the Association innovation.2 The most important priorities Cultural Development” (Ministry of Culture used concept of visual arts, which on the basis of his/her creative work and of the cultural policy, introduced at the of the Republic of Croatia, 2001) through covers unmentioned areas of visual can apply to have his/her contributions beginning of 2000 were, among others: to the most recent “Strategic Plan 2012– expressions and leaves possibilities paid from the national budget, as long building up the functions, work methods and 2014”. Subsequently, there are no specific to include new directions of visual as he/she meets the criteria laid down public respect for the new Culture Councils; instruments of the cultural policy that can creativity. Rather, the document uses in the Regulations about the procedures creating mixed funds for cultural investment; directly be linked with the arts market. The the term fine arts despite the fact that and conditions for the recognition of the renewing and readapting the cultural policy instruments are developed for those visual arts encompasses all those forms rights of artists to have their retirement, infrastructure; finalizing a complete registry areas that policy addresses, regulates of artistic expression that were created disability and medical insurance paid out of cultural monuments; and furthering the or are within the remit of policy strategic on the technology developments of our of the national budget of the Republic use of information technology in culture. planning. None of this applies in the case of time (e.g. photography, animation, video- of Croatia4. Ergo, alignment of terms, arts market. Still, although cultural policy art, internet and digital art, integrated definitions and interpretations between The vision of the Strategic Plan of the Ministry decision-making processes do not intently media, multimedia etc.) and which are Law brought by the state and Regulations of Culture for the period of 2011-20133 is include arts market, the implementation of common artistic tools, especially with brought by the professional association creating a society in which the freedom of policy (namely, legislative framework for the the younger generation artists. On the that conducts the Law’s implications, cultural and artistic expression and media, field of culture) in various areas can have other hand, fine arts connotes paintings, is crucial. Still, this has yet to happen – along with the protection of cultural heritage direct effects on the arts market. Some of graphics and sculpting. Another problem the Law has not been amended since are the foundations of preservation and those areas are legislation on the status arises from insufficiently accurate 1996. However, Regulation about development of cultural and national identity of freelance artists, act on museums, tax definition of applied arts – the term the procedures and conditions for the in the community of European countries and exemptions on purchase of the artwork, is explained differently in the Law on recognition of the rights of artists to have European Union. regulation on the distribution of public budget the Rights of Freelance Artists and their retirement, disability and medical funds etc. Encouraging Cultural Creativity to how it insurance paid out of the national budget

3http://www.minkulture.hr/userdocsimages/NAJNOVIJE%20NOVOSTI/Strateski%20plan%20Ministarstva%20kulture%202012%20-2014%20%20-%20revidiran%20za%20web%2016042012.pdf, accessed on 12. 05.2012. 4http://www.culturalpolicies.net/web/croatia.php?aid=514&cid=1110&lid=en&curl=531, accessed on 20.05.2012. 5http://www.culturalpolicies.net/web/croatia.php?aid=623, accessed on 15.05.2012.

54 1.2. Cultural policy in practice: Visual arts funding models of the Republic of Croatia (NN 119/04) of enterprenurial approach to managing The financial support for visual arts When it comes to financing, numbers on does include multimedia in the same and showcasing cultural heritage for the is accessible from three budgetary culture in general are not great. Only in category as fine arts thus opening more tourism market). sources; national, regional and municipal 2007 and 2008 the Ministry of Culture possibilites for visual arts to eventually (local). In the annual Open Call for budget reached over 1 percent of the replace outmoded concepts and terms. “Strategic Plan 2012–2014” presents, Public Needs in Culture Programmes, total public budget. In the following The confusion and inconsistency in the as one of the specific objectives, visual arts can apply for funding in the years, a decrease is evident. In terms usage and application of basic terms “development of the independent following categories: core activities of of total expenses for culture per capita, is spread wideover – from policy and culture” that includes support for visual the cultural institutions and professional they follow the previous trend: they legislation to education. It is a task for arts programmes. Around 180 visual associations in culture; museum were the highest in 2007 and 2008 Ministry of Culture to resolve, after over arts programmes, encompassing and gallery activities; visual arts, art (around 78 and 87 €). After these years, 20 years of an unchanged position while retrospective, individual, group and monoghraphs, design and architecture; expenses are decreasing. Expenses for the circumstances have tremendeously thematic exhibitions in gallery spaces new media culture; and international visual arts by the Ministry of Culture transformed. as well as exhibitions by Croatian cultural cooperation5. In the 2010, amount to around 30 €, being again the Association of Visual Artists in Zagreb, visual arts field received 0.54% of the highest in 2008, 38 €. These numbers One of the two main objectives of the Istria, Rijeka, Split and Osijek are funded total state expenditure in culture (in real are somewhat greater knowing that the “Croatian Ministry of Culture’s Strategic by the public budget annualy. numbers little under 750.000 Euro)6. Ministry of Culture awards some more Plan 2012-2014” is “protecting and funds for visual arts through the “New preserving cultural heritage” which is Graphic 1. Ministry of Culture share in the total public budget Media Cultures” programme but it was to be realized with the “development quite difficult to sort out what precisely of the role of museums and galleries”. refers to visual culture within this Although galleries are initially mentioned, programme, therefore this category museums are in the focus of this strategic was not singled out. In the period of objective. This corresponds to the 2005-2011 in this way, the Ministry strategic planning set forth in Ministry of Culture supported between 114 and of Culture’s “Strategy of Preservation, 152 institutions and between 217 and Protection and Sustainable Economic 287 programmes in the field of visual Development of Cultural Heritage for arts. It was not possible to calculate the the Period 2011–2015” where gallery value of artwork acquisitions. sector is also disclosed as a by-product next to museums (galleries are stated A number of visual arts organisations Source: Ministry of Culture (personal communication with the Ministry analyst, Mr. Boris Jurinić) as an example of good practice in sense **Since 2012 the Department for Nature Protection is no longer under the responsibility of the Ministry of Culture received programme support and

6http://www.min-kulture.hr/default.aspx?id=7285, accessed on 15.05.2012. Some categories in the Open Call for Public Needs in Culture Programmes can vary from one level on administration to another, but generally, regions and municipalities announce Open Calls with almost exact categories as the national one. 7http://www.culturalpolicies.net/web/croatia.php?aid=538, accessed on 15.05.2012.

55 Table 1. Ministry of Culture role in culture and in visual arts funding from the “Culture 2007 – 2013 programme” (such as Croatian Institute 2005 2006 2007 2008 2009 2010 2011 for Movement and Dance: „Dance

Total budget 11.714.328 12.793.326. 14.401.013. 15.372.323 15.723.198 16.043.110 15.991.934 Explorations Beyond Front@“, „W_EST expenses – WHERE“, and BADco.: „Black North (Central level) in 000 € SEAS“) accessible through Cultural Total expenses – 103.020.951 121.152.700 148.089.973 166.733.489 143.948.699 134.773.658 127.356.218 Contact Point Croatia, a department Ministry of Culture in 000 € established within the Directorate for International Cultural Co-operation of Ministry of Culture part 0.88 0.95 1.03 1.08 0.92 0.84 0.80 in % the Ministry of Culture in 2006.

Total public expenses for 58.45 67.75 78.30 86.64 77.45 70.95 N/A One of the most significant cultural culture per capita policy incentives in the field of visual arts in Croatia is the status of the

Ministry of Culture 23 27 33 38 32 30 30 freelance visual and applied artists expenses for culture per capita which is covered within the Law on the Rights of Freelance Artists and Total expenses – 663.390 860.682 854.660 962.449 758.040 745.511 760.465 Encouraging Cultural Creativity (NN Visual arts in €* 43/96, NN 44/96 - Amendment). Furthermore, in July 2011 the new Ministry of Culture 0.15 0.20 0.20 0.22 0.18 0.17 0.18 expenses for visual Law on Foundation “Kultura nova” was arts per capita adopted, and created the necessary

Number of financed 152 132 151 145 116 114 140 legal framework for the functioning of institutions in visual arts the foundation that will be dedicated to through the MC public Open Call the promotion and development of civil Number of approved 224 221 287 265 217 236 287 society in the field of contemporary programs in visual arts through the MC public culture and arts, encompassing visual Open Call arts. The funding for Foundation “Kultura nova” shall be obtained partly Source: Ministry of Culture (personal communication with the Ministry analyst, Mr. Boris Jurinić) through the Lottery fund, donations and *Besides the Ministry of Culture financial programme “Fine arts, Visual arts and Audiovisual arts”, visual arts are also financed through “New Media Cultures” programme. 7 Numbers presented in the table relate only to the “Fine arts, Visual arts and Audiovisual arts” category. other sources according to the Law .

8http://www.culturalpolicies.net/web/croatia.php?aid=423, accessed on 08.05.2012.

56 1.3. Cultural policy current issues and topics

Croatian Ministry of Culture grants One of the principal issues in Croatian industries refer to specific cultural “Vladimir Nazor” annual award for cultural policy, directly connected sectors (book production, music, films, cultural activities, including visual with the financing of culture and etc.) and to economic sectors, e.g., arts: the award is given to the “best overall cultural production, is a wide small entrepreneurship, activities of artistic achievements in literature, gap of disproportion in allocation of transnational media corporations in music, visual and applied arts, dramatic public funds between public sector Croatia, etc. Cultural industries are arts, architecture and urbanism in the and independent arts scene – current statistically not transparent nor are Republic of Croatia”. ratio is 93:7 percent in favour of they perceived, by the public policy public institutions in culture. This and public in general, as a profit-driven Additional funding for visual situation creates a production lag in sector. Lack of appropriate statistics arts is available through Cultural the overall cultural sector and causes for this sector makes it impossible to Entrepreneurship programme. This much frustration among artists, assess the turnover or employment programme has been initiated by the cultural workers and other non- figures for most cultural/creative ministry of Culture and the Ministry of institutional sector representatives. industries in Croatia, but it is evident Economy, Labour and Entrepreneurship Current Minister of Culture highlights that employment in the sector has been in 2008 as a grant programme of this problem as one of the priorities growing constantly in the period 1998- small value. The aim of the project is that should be addressed by the new 20088. to stimulate cultural entrepreneurship, administration. One of the solutions cultural industries’ and entrepreneurial is dispersion of funds sources like projects promotion in the field of newly established Foundation „Kultura specific cultural sectors, including Nova“ which is to bring otherwise visual arts. Programme users are small- lacking financial opportunities for the sized economic subjects involved in independent arts production. cultural activities – craft companies, small and medium-sized companies and Another issue is that cultural industries cooperatives, institutions excluding in Croatia have not been recognized as a public institutions, independent specialised field of cultural development. artists, art organizations and cultural Subsequently, there is no overall legal institutions which implement cultural framework to specifically promote and entrepreneurship projects. develop the cultural industries. The legal provisions that affect cultural

9 http://www.culturalpolicies.net/web/croatia.php?aid=423, accessed on 08.05.2012.

57 1.4.Overview of legislative framework for Art market

The already mentioned Law on the Rights Minister of culture approval. The revision of • 5 participations on group – conceptual since legislation which regulates cultural of Freelance Artists and Encouraging these rights is made every five years. The exibitions, or activities does not include inspection Cultural Creativity covers issues such as artist who is not entitled to the budgetary • 2 independent exhibitions of or sanctions linked to freelance artists’ the rights of freelance artists, cultural and contributions for retirement benefits and sculptural works in stone, bronze, iron, work – amateur painters. Besides, it also artistic creativity, registration and scope health insurance has the possibility to pay steel, wood, glass or other materials, has influence on consumers since they of artistic organizations and can be said them himself/herself. or purchase reproductions or plagiarism to be the main law. There are several other As to gain the right to budgetary • 1 independent and 2 group – instead of authentic artwork. Persons laws regulating other fields (such as the contributions, the artist, beside acting as conceptual exhibitions, or involved in artwork trade are also subject Law on Trade which regulates conditions an art creator as his/her sole profession, • 5 juried exhibitions. to the Law on Consumer Protection9 for trade on domestic and foreign has to fulfill several other conditions. The Besides, some additional criteria are since it is the right of consumers to know markets; the Law on Consumer Protection first condition is that in the last three years needed as elements for their combination the origin of artwork and to be given the regulating consumers’ rights) which do not his/her annual income outside the field of (such as awards, catalogues/monographs, receipt for purchased product. In this cover issues related to the art market but, artistic creation has not been greater than reviews/professional texts, etc.). The same way, illegal business and inexistence in fact, show the lack of regulation in the the average Croatian income for the last applies to the field of applied visual arts. of art trafficking also leads to avoiding field of arts market. Also, there is theLaw year. Besides he/she must act publicly tax payments since it is impossible to on Income Tax which regulates tax breaks according to the following criteria: Greatest problems due to bad determine the tax base10. for donations in culture. • 3 independent exhibitions (with harmonization of different laws arise different artwork), or in the field of trade. During tourist The Law on Income Tax regulates tax Rights of freelance artists are regulated • 2 independent exhibitions and 2 season, various artwork, decorations breaks for donations in culture up to 2% of by the Law on the Rights of Freelance group – conceptual exibitions, or and souvenirs are sold in the open space the revenue reported in the annual tax files Artists and Encouraging Cultural • 5 group – conceptual exhibitions, or while persons selling them do not have submission. Exceptionally, tax deductions Creativity. Among other art sectors, this • 3 independent multimedia projects, or registered businesses, do not have are increased for greater donations if Law also regulates visual arts. Based • 2 independent and 2 group – entrepreneur status, do not fulfill minimal approved by the Ministry of Culture. on their professional work in the field conceptual multimedia projects, or technical conditions for office spaces of arts, freelance artists have the right • 5 group multimedia projects (video, film, and do not pay taxes. In this way, trade in to retirement and disability benefits as computer art, performance or other amateur artwork endangers the freelance well as medical insurance. If a freelance forms of contemporary art creations) artists’ existence due to the unclear artist requires the mentioned benefits, together with the professional legislation in the field of amateur art. Since related contributions are paid from the association’s confirmation, or inspections are transferred to the Ministry state budget based on the Professional of Culture, problems of illegal trade are Council’s decision together with the out of focus of the business inspection

10According to this Law, trader must clearly, visibly and legibly highlight the sales conditions of the product and issue an invoice for it. 11http://www.suvremena.hr/1380.aspx accessed on 24.05.2012.

58 1.5. Decentralisation of cultural policy and arts scene

There are two levels of (de)centralisation in arts/ government levels and amounts to around culture in Croatia that have an effect on arts 42%. On the opposite side, municipalities’ market. The first level is territorial centralisation share is the lowest is always lower than 3%. and it describes a situation where most of the Regions (called Counties in Croatia) also art production is concentrated in the capital city, contribute with small amounts which are Zagreb. Zagreb is the cultural centre of Croatia around 4% in the whole measured period. concerning art scene in general and especially The second largest government funding level when it comes to creative industries sector. are towns/cities which spend some 27% Some other Croatian cities have an important for culture, Zagreb excluded. The capital city, role in the Croatian cultural life but the greatest Zagreb is after the state level, the second number of artists lives in Zagreb since it has the largest funder of culture awarding almost the necessary cultural infrastructure. total amount of what all other Croatian cities spend, around 23%. This is also reflected in Participation of different levels of government the centralization of arts. expenditure for culture breakdown is shown in Centralization trends in visual arts sector is percentages in Table 3. also seen in the number of relevant galleries (registered by the Croatian Freelance Artists’ Throughout the whole period 2005-2010, the Association). There are 61 galleries in Zagreb Ministry of Culture’s share in total expenditures while other cities number far less galleries that for culture is the greatest comparing it to other that (second largest – 7 etc.). Data neither on

Table 2. Participation of different levels of government in the total expenditure for culture

Source: Ministry of Culture (personal communication with the Ministry analyst, Mr. Boris Jurinić) Graphic 2. Territorial distribution of galleries in Croatia

59 1.6. Cultural participation attendance nor on the number of programs in democratic, de-etatised and more professional According to available data provided by especially its economic share in the galleries is available (see Table 3. and Graph 2). system of assessment and decision-making the Croatian Bureau of Statistics, total institutions’ overall earnings. Since the on the distribution of budgetary funds has household expenditures in the period Croatian Bureau of Statistics does not The second level is the so-called institutional been introduced by forming arts councils 2005-2009 are more than 9.000 € offer data on visual sector institutions centralisation or policy focus on institutional - joint decision-making by the Ministry of per year and have slightly increased (such as galleries) it is impossible to make art framework, meaning that public institutions Culture and representatives of the cultural practically every year in the mentioned comparison with other cultural sectors. have a priority in the policy stucture – from the sector was established on the national level period reaching 10.158 € in 2009. Realistically, the greatest attendance secure organisational status (including the through the establishment of several Culture Around 6% is the share of the household is evident to libraries (7.230.000) but employment security of cultural workers in Councils (Law on Culture Councils, NN recreational and cultural consumption in only numbers for 2007 are presented. the cultural institutions) to firm public funding 53/01, NN 48/04, and NN 44/09) which the household total consumption which Greater attendance is to cinemas than to arrangements. Such policy provisions function include Culture Council for fine arts and the amounts to some 600 €. Data on rural/ theatres. in favour of institutions, or are institutionally media (later changed to new media cultures) urban population expenses for culture centralised and are not stimulating in the arts among others. Establishemnt of the Culture are not available. The said is represented If we are talking the media in the visual market direction. Councils has decentralised decision-making by the Table 4. arts, it cannot be claimed that they have processes previously reserved for political and a great role in audience development. In terms of development of financial administration structures. Attendance data for Croatian cultural Culture is treated rather poorely in the programmes in the field of visual arts, the more institutions is hardly obtainable. best-selling daily newspapers (one or Although it is obligatory for some cultural two pages) and no special weekly or institutions to follow those statistics, it is monthly specialized in-magazines exist

. Table 3. Cities with the greatest number of galleries/exhibition spaces* difficult to measure the real attendance, as is usual for the design, architecture,

Table 4. Consumption on culture

Source: Croatian Freelance Artists’ Association *Data in the table show cities with the greatest number of galleries or exhibition spaces (since there may be one institution having several exhibition spaces). The actual number of galleries in Croatian cities is larger although the complete number is n/a; the presented number results from the Croatian Freelance Artists’ Association’s list of relevant galleries in the field. Source: Croatian Bureau of Statistics, Statistical Information 2008 and 2011, www.dzs.hr

12http://www.nacional.hr/clanak/32820/milijunske-tajne-trgovaca-umjetnina, accessed on 10.05.2012.

60 2. Art market supply and demand cycle in Croatia lifestyle, etc. The same situation applies sector only for blockbuster exhibitions. The size of Croatian arts market is and are not constant in a sense that to the webspace. Realistic art criticism Only the 3rd programme of the Croatian very small - the upper middle classes they provide some stability for the arts texts also lack while information on radio broadcasts visual art programmes. that were traditional connoisseurs and market flow. foreign events are sporadically present. Generally, it cannot be said that the buyers of art are diminishing and there Specialized newspapers (such as media have great, if hardly any role in the is no evident increase in the number of According to artist Slaven Tolj (2012), Zarez, Hrvatsko slovo) bring texts of participation in the visual arts. serious art collectors. As claimed by supply and demand are not in balance a higher quality but visual arts are not the gallery owners11, today’s supply and generally, effect and cause relation treated separatelly but equally as all and demand cycles in the arts market between actors that create arts market other cultural sectors. Public television are dictated by the following artwork is inconsiderable and insufficiently features no programmes on visual arts criteria: rarity, popularity and high- visible. Majority of the artists create at all and private televisions follow the price. The prices in the arts market work without explicit aspirations for the are influenced and formed by many value of artwork to be positioned and factors; from sellers, gallery owners circulated on the arts market. Apart Table 5. Participation in culture per cultural sectors and museum experts to current from commissioned work as exception, trends. Still, the crucial criteria are the most of the artwork in Croatia, quality, author and year of origin, motif especially relevant works of art, would and technique of the artwork. The be produced without special regard of acquisition of the works of art by public the arts market movements and trends. museums and galleries is also one of the important factors in the dynamics of offer and request situation but public institutions’ influence is limited with the Source: Croatian Bureau of Statistics, Statistical Yearbook of the Republic of Croatia 2008 and 2011, www.dzs.hr budgetary restraints – the acquisitions * The numbers refer to seasons (such as 2005/2006, 2006/2007, etc.) which we presented by the year when the season started (such as 2005 for the season 2005/2006). depend on the public budget donations

13For more information on Museum of Contemporary Art in Zagreb, see http://www.msu.hr/ 14For more information on Museum of Modern and Contemporary Art in Rijeka, see http://www.mmsu.hr/Default.aspx?art=406&sec=2 15For more information on Gallery of Fine Art in Split, see http://www.galum.hr/hr/Naslovnica/4/home.aspx 16For more information on Art Workshop Lazareti from Dubrovnik, see www.arl.hr 17For more information on Miroslav Kraljević Gallery, see http://www.g-mk.hr/ 18For more information, see http://www.blok.hr/ 19For more information, see http://www.whw.hr/whw/index.html 20For more information, see http://www.kontejner.org/o-nama 21For more information, see http://fotogalerija-lang.com/ 22For more informaton on Lauba, see http://lauba.hr/hr/naslovnica-2/ 23For more information on Cettina Gallery, see http://www.cettinagallery.com/ 24For more informaton on Marisall Gallery, see http://www.marisall.com/index.php?option=com_content&view=article&id=101&Itemid=101&lang=hr 25For more information on Virtual Museum of Avantgarde, see http://www.avantgarde-museum.com/en/museum/ 61 3. Art market infrastructure: key actors

Any listing of relevant arts market and trends of arts market. Public market flow. Rather, the independent Marisall Gallery23 and Virtual Museum actors in Croatia is more of a conjecture institutions’ influence is, however, as scene is more engaged with fostering of Avant-garde Art/Collection Marinko than a fact. Still, existing practice and already mentioned, limited with the the development, accessibility, quality Sudac24. system within the visual arts sector budgetary restraints. and the flow of the artistic activities, in Croatia and its connections with without strategic planning for the A small number of private collections the transfer and trade of artworks, Independent arts organisations financial outcome of those activities. that have been established during the indicate that the following institutions, (relevance on the account of exhibiting Amongst independent actors directly past decade have played a significant organisations and individuals can be and selling work by unconventional or indirectly connected to visual arts in role on the national arts market. Apart presented as relevant actors in the arts contemporary artists, intensive Croatia and apart from the organisation from the listed ones, those include market: cooperation and presence on the listed as a relevant organisations in the Edo Murtić Foundation and Collection international independent visual arts context of the arts market, following Hanžeković. These private collections Public cultural institutions (relevance scene, partaking at the international must be highlighted: BLOK (Lokalna have, along with the public institutions on account of consistent acquisitions arts fairs): Art Workshop Lazareti, baza za osvježavanje kulture which and independent visual arts sector, or works of art, cooperation with Dubrovnik15 and Miroslav Kraljević organizes the Urban Festival dealing contributed towards developing viable corporative sector and exhibiting Gallery, Zagreb16. Independent art with various urban subjects)17, WHW market for the national visual arts work by contemporary Croatian scene has been particulary active in – what, how & for whom (curators’ production. artists): Museum of Contemporary the field of visual arts since the 1990’s collective)18, Kontejner – studio for Art, Zagreb12; Museum of Modern and – from engaging in production of contemporary artistic practices19, Visual arts manifestations/events: Contemporary Art, Rijeka13; and Gallery contemporary art forms, to intensifying ArtAnale from Split; Days of Croatian ZGRAF is an international exhibition of Fine Art, Split14. international cultural cooperation Performance Art from Varaždin; Photo of graphic design and visual in the field by showcasing Croatian Gallery Lang from Samobor20. communications, held triennially in Although the public status of public work abroad and by hosting relevant Private initiatives including individuals Zagreb, Croatia from 1975. The institutions implies that art trading is international exhibitions and visual (relevance on the account of acquisiton, organizer of the exhibition is the not a priority function for the public art projects. However, activities of the collecting and exhibiting of expressions Croatian Association of Artists of institutions, the acquisition of the works independent visual arts scene have of visual Croatian artists, partaking at Applied Arts (ULUPUH)25. of art by public museums and galleries never been focused towards marketing the international art fairs): LAUBA21 is very important factor in the dynamics of the artwork or creating stable art and Tomislav Kličko, Cettina Gallery22,

26http://www.zgraf.hr/, accessed on 20.05.2012. 27http://46zagrebackisalon.com/, accessed on 20.05.2012. 28http://www.poup.hr/anale/prva.aspx?stranica=391, accessed on 20.05.2012. 29http://www.hulu-split.hr/str/izlozbe/salon/35salon.htm, accessed on 20.05.2012. 30http://nmz.hr/en/, accessed on 20.05.2012. 31http://www.gluo.hr/ogaleriji_1_en.html and http://dizajn.hr/#305-21-slavonski-biennale, accessed on 20.05.2012. 32For more information on Adria Art Annale, see http://split.com.hr/foto/aaa/172/7218 33Most comprehensive lists can be found online at http://www.mdc.hr/hr/mdc/registar-muzeja/ and http://www.akademija-art.hr/muzeji/50-muzeji-i-galerije/608-muzeji-i-galerije-u-hrvatskoj-a-l-osim-zagre- ba-i-zapreia.html , accessed on 22.05.2012. 62 ZAGREB SALON – APPLIED ARTS 2005. In 2011, Blue Salon was CROATIAN BIENNALE OF PAINTING trading at the art fairs is linked with AND DESIGN is a representative again held in Zadar, as a triennial of is the most recent, or the “youngest” of the international arts fairs due to non- annual exhibition of contemporary art Fine Arts, showcasing work from the the visual arts manifestations in Croa- existence of such opportunities on the of the Republic of Croatia, established leading contemporary Croatian and tia. The first edition took place in 2011 national level (see chapter 6.). by the Zagreb City Council in 1965. It international artists. Organizer of this with the aim to become a generator of is organized by Croatian Association manifestation is Art Gallery of the new artistic creations and movements. Art Galleries: There are many galleries of Artists of Applied Arts (ULUPUH). Zadar National Museum29. The manifestation is focused on con- in Croatia and there are many lists of This acclaimed visual art fair shows temporary Croatian painting. galleries in Croatia32. This is due to the annual achievements by contemporary SLAVONIA BIENNALE is an arts fact that the listing, or the given category Croatian visual artists, including manifestation organized by Gallery ADRIA ART ANNALE is an exhibition of the gallery is directly connected to the architecture and urbanism, applied arts of Fine Arts in Osijek since 1966. of the contemporary Croatian art. By system of securing rights and benefits and design26. This is the only juried arts exhibition probing the prevalent truths, this mani- for the freelance artists, i.e. the given in Slavonia encompassing painting, festation questions the possibility of criteria of the number of individual or POREČ ANNALE is the oldest Croatian sculpting, graphics, multimedia and new type of society31. group exhibitions refers to exhibiting in manifestation exhibiting work by video-art with alternating applied arts, galleries officially listed by the Croatian contemporary Croatian artists (group urbanism and architecture30. Artists colonies: There are no major Association of Freelance Artists. work). It is held every year, beginning of artists’ colonies in Croatia. All such According to that list33, there are August in the gallery space of the old BIENALLE OF SMALL FORMATS is endeavors are mainly created by 180 galleries throughout the country Istrian Parliament House in Poreč and is organized by Croatian Association of the amateur artists and hold no (including the number of museums that organized by the Open College Poreč27. Visual Artists/Croatian Association of greater significance for visual arts are also listed as referenced exhibiting Artists from Split. The exhibition show- field, cultural policy or arts market in institutions). Most of these galleries SPLIT SALON is a biannual manifesta- cases works from Croatian sculptors Croatia. However, following should be exhibit, represent and sell artwork of tion of contemporary arts founded in and painters. mentioned: Arts Colony Ston, Baranja Croatian visual authors. 1969 as a group exhibition of artists Arts Colony (held in the National Park from Split. It is organized by Croatian YOUTH SALON is one of the most significant Kopački Rit), and Summer Art Colony Still, the real number of galleries is Association of Artists from Split28. biannual manifestations that present work of Brač (held in Supetar on the island of far greater as it includes hundreds of young Croatian artists. It is organized by the Brač). art-souvenir shops/galleries selling BLUE SALON is an arts manifestation Croatian Association of Visual Artists. souvenir art, reproductions and that was first held in 1957 in Zadar, Art Fairs: There are no significant graphics that appeal to the tourism and was continually convened until art fairs in Croatia. Participation and market. It is impossible to detect the

34http://www.hzsu.hr/likovno.html, accessed on 22.05.2012. 35For more information, see http://www1.zagreb.hr/slglasnik.nsf/10288f1421388ff8c1256f2d0049015b/efee89eb9b4a7650c12573c20035bbce 36For more information, see http://www.rijeka.hr/VizualnaUmjetnost 37For more information, see http://www.kontura.com.hr/default.asp?ru=9&sid=&jezik=1 38For more information, see http://www.aukcije-lavalnugent.com/cms.php?id_cms=7 63 accurate number of these type of Such an irratic and disorganised house Kontura Ltd. was founded in galleries as plenty are opened and system that varies from one city to 2002 as the first official company for closed from one tourist season to another has many downfalls. Artists auctioneering in Croatia. This company another. are exposed to the benevolence of is the sole holder of the auctioneering the municipal governments and local licence given by the Ministry of Culture Artists’ Studios: Studios are given political leaders: the latest illustration of the Republic of Croatia, meaning that to artists for certain period, under of this problem is happening in Zagreb it is authorised to bid and sell protected contractual conditions by the local where, with no prior warning or cultural goods (arts and antiquities). municipalities. There are no known explanation, local government raised Auction house Kontura Ltd. deals with examples of national or regional level of the rent on all artists’ studios as well fine arts: paintings, sculptures and administration giving their real-estate as the rent on the home building of the graphics36. The Laval Nugent gallery units to be used as artists’ studios. Croatian Association of Visual Artists, has ventured into the auctioneering Criteria for bestowing city’s spaces the Meštrović Pavillion, by 400% (from business in the following areas: art, for this purpose varies from one city 750 Euro to 5.900 Euro). This action antiquities, numismatics and philately to another: in Zagreb, minimal lease or by the local government caused a and old postcards. Art includes rent for the given space is charged34; in stir amongst Association’s members, paintings, drawings, prints, sculptures The following table shows the poor Dubrovnik there is no criteria and the cultural professionals and wider public and photographs by Croatian and development of institutional arts spaces are bestowed directly, without and the outcome of the undergoing foreign authors37. market in Croatia. any procedures; in Rijeka, studios are negotiations between Association given to the artists according to the and the City are yet to produce a new joint procedures between City of Rijeka situation. Table 6. Art market infrastructure in numbers and the local branch of the Croatian Association of Visual Artists35 and Auction houses: Auctioneering of can be used for both work and living; art work doesn’t have a tradition in in Split, the entire block of buidlings Croatia and not many galleries or were granted to be used by artists; and organisations engage in it, resulting in in Osijek, larger space capacities are only two organisations that are active Source: Croatian Freelance Artists’ Association (HZSU) given to artists for work. in this domain: Auction house Kontura * The actual number of galleries in Croatian cities was larger although the complete number is n/a; the presented Ltd. and Laval Nugent gallery. Auction number results from the Croatian Freelance Artists’ Association’s list of relevant galleries in the field in the requested period.

39http://www.culturalpolicies.net/web/croatia.php?aid=72, accessed on 15.05.2012. 40Announced Academy of Visual Arts and Music at the University of Dubrovnik’s programme features cultural policy and arts managment modules, covering a range of subjects from these two fields like Comarative Cultural Policy, Cultural Economy, Communicating Cultural Products, Cultural Planning, Market Planning and Enterpreneurship in Culture, Approaches to Arts and Culture Management, etc. 41Within independent artistic professions, statistics recognize only artists in the traditional sense (i.e. actors, musicians, painters, etc.) but no other professions (such as designers or others employed mostly in small businesses). Source: http://www.culturalpolicies.net/web/croatia.php?aid=429, accessed on 07.06.2012. 64 4. Visual arts education, professional associations and arts market

According to the Statistical Yearbook Faculty of Graphic Arts in Zagreb. All of offers courses in marketing, design claim their rights for health insurance 200938, there are four art academies in the listed programmes are provided by management and presentation skills and retirement benefits. Generally, the Croatia, all on university level: Academy the public institutions under authority but they mainly serve to facilitate work decrease of the number of independent of Fine Arts Zagreb, Arts Academy of of the national government, its Ministry of the future individual designer at the artists is noted in the period 2005- the University of Split, The Academy of Science, Education and Sports. service market. Consequently, visual 2012. Some increase is seen in the of Arts Osijek (unit of the University of Students, thus obtain their education artists lack knowledge on economy, period 2006-2008 and again in 2009- Josip Juraj Strossmayer) and Academy under conditions that apply to all financial management, strategic 2011 while the number drops in 2012 of Applied Arts (Faculty of the University national higher education institutions. planning, art theory, cultural policy, again. Rather similar pattern is seen of Rijeka). Impeding is the inauguration Existing educational programmes arts managment and interdisciplinary in the number of independent visual of the Academy of Visual Arts and do not have management curricula39 approach to all those fields. artists. Music at the University of Dubrovnik or programmes for intermediaries in (expected beginning is academic year art market nor develop visual artists’ It is difficult to track progession of Mainly, artists are members of 2013/2014). Apart from these art entrepreneurial skills except for artists from education to professional professional associations which schools, there is a School of Design both the School of Design at the Faculty accomplishment. Generally, artists, as indirectly provide for their social at the Faculty of Architecture and at the of Architecture in Zagreb which a professional category, are ambiguous and medical care security. The most terrain when it comes to research significant artists’ associations are Table 7. Overview of artists’ associations and the number of independent artists and statistics in Croatia; data on the Croatian Association of Visual Artists number of employed or unemployed (HDLU), Croatian Association of the Number Number of artists’ Number of Number of Number of 40 of artists’ associations in the independent independent employed persons artists is unattainable as is the data Applied Visual Artists (ULUPUH) and associations field of visual arts artists artists in visual arts in culture on artists’ average yearly incomes. The Croatian Designers’ Society (HDD). only available number is the number Croatian Association of Visual Artists of visual artists as registered by the (HDLU) is nongovernmental, non-for- Croatian Freelance Artists’ Association profit and politically neutral union of which totals to 582 in 2012 (see Table 7.). professionals established in 1868. Its membership consists exclusively Numbers of independent artists shown of visual artists of all generations, in the Table 4. is the one registered working in all forms of expression Source: Register of Associations of the Republic of Croatia, Register of Art Organizations, Croatian Freelance by the Croatian Freelance Artists’ and disciplines. The basic aims of Artists’ Association (HZSU) (personal communication) and Ministry of Culture (personal communication) * Total number of all cultural (not necessarily artists’) associations in Croatia is 6912. Association. It might be that there are the Association are: to support and ** Total number of all cultural (not necessarily artists’) associations in Croatia in the field of visual arts is 311. more independent artists but these are encourage contemporary visual *** Only persons registered in the Croatian Freelance Artists’ Association (HZSU) and persons employed in culture by the Ministry of Culture budget. The number excludes persons employed in culture by the local government budgets. the ones who deserved this status as to expression, to improve and protect the

42http://www.culturalpolicies.net/web/croatia.php?aid=73 accessed on 07.06.2012.

65 5. Corporations and Art market freedom of visual expression, to organise Croatian Designers’ Society (HDD) is All these associations are professional Recently, a more significant contribution exhibitions, to collaborate in preparations a non-governmental, non-profit and and public and established by the artists to Croatian culture sector funding of the laws and rules regulating visual voluntary professional association themselves as to protect their interests. has been stemming from donations arts production and social rights of the established in 1983 and is invlolved in Leaders are democratically elected by and sponsorship, particularly of large artists. promoting common professional and the members of artist community which companies such as Adris, T-COM, social interests of Society members ensures the control over the associations’ VIPnet, Filip Trade, B-net, and banks Croatian Association of the Applied Visual by creating systematic conditions to work. Activities of associations are (e.g. ERSTE Bank Croatia, Hypo Alpe Artists (ULUPUH) is the only professional improve work in the field of design. The primarily of cultural nature such as Adria Bank Croatia, Zagrebačka banka, association of the applied visual main goals of HDD are the development, organization of members’ exhibitions, etc.). The precise amounts and/or artists in Croatia established in 1950 promotion and improvement of design annual exibitions of special artistic indication of trends cannot, however, be although with a longer history (dating creativity in Croatia, representing achievements and are not closely linked given due to lack of statistical data (The back to 1886). It represents the roof interests and status of the profession to influence arts market mechanisms. Ministry of Culture only has information organization for all branches of visual arts and the HDD members. Its members They are funded by memberships, on the decisions and issued certificates which have a specific application (scene are active in the following fields: graphic Ministry of Culture and local government. concerning tax relief for companies design, costume design, light design), design, product design, electronic that requested these certificates and architecture, horticulture, photography, media design, typography, photography, Protection of artists’ rights are not no information on the amount of these caricature, illustration, comics, animated illustration, fashion design and theory reflected in some long-term policy sponsorships or donations is available). cartoons and applied painting, industrial design as well as in design education. of artist associations except for the These contributions are given mostly design, clothing design, precious fact that Croatian Freelance Artists’ on a project basis. It has to be noted metals design, ceramics, chinaware Other authorized professional artists Association cares about their social and that in 2009 and 2010, the funds have and glass, restoration etc. at the state associations in the field of visual arts medical care. Authors’ rights are usually narrowed down, as a consequence of level. It is non-governmental, non-profit in Croatia are: Association of the Naive managed by the artists themselves, often the global recession.41 professional organization with the aims Artists of Croatia, Croatian Association with the help of lawyers or some kind of of: Croatian applied arts development; of the Applied Visual Artists Zagreb, oral agreement is made. Rarely it is done Still, corporate support for visual improvement and protection of visual Croatian Freelance Artists’ Association, in a written form since ti is a part of a grey arts in Croatia has had many positive arts creativity freedom and the adequate Croatian Designers Society Zagreb, economy, cash payment avoiding taxes. ramifications, specifically in the assessment of Croatian applied arts; Croatian Association of Visual Artists partnership projects with the visual art protection of applied works of art and of Dubrovnik and Croatian Association of institutions. Most important projects are copyright; impact on Croatian cultural Visual Artists of Istria, Međimurje, Osijek, [email protected] – a collaborative policy; cooperation with other artists Rijeka, Split, Varaždin, Zadar and Zagreb. project by T-Mobile, Croatian Telecom organizations in Croatia and abroad. and Museum of Contemporary Art in

66 6. Cultural relations, networking and partnership

Zagreb in which T-Mobile funds the award, Within the arts market remit, a Očko and Igor Eškinja in renowned organizations and galleries establishing an acquisition of the artwork that will significant role is held by the Ministry French art centres like Palais de Tokyo partnerships like Galerie Michaela be included in the Museum’s permanent of Culture that regularly funds Croatian and Musée d’Art Contemporain du Val- Stock from Vienna and Art Workshop collection. Additionally, every year Erste artists’ exhibitions abroad as well as de-Marne. In 2010, Croatian Ministry Lazareti, known as Art radionica Bank announces a competition for the international collaborative visual arts of Culture and French Embassy in Lazareti (ARL) from Dubrovnik sharing project called “Erste fragmenti” (Erste projects that have an impact on arts Zagreb jointly organized international exhibiting space at 2011 Viennafair. Fragments), through which it supports market. For example, Croatian Ministry arts market seminar which was one of a young and emerging visual artists up to 30 of Culture is a partner in manifestation kind event concerning this topic. years of age and art students, by buying titled “Croatie, la voici! - Festival de their works of art (sculptures, paintings, la Croatie en France” that includes Apart from the governmental role in prints and installations) and by granting an presenting contemporary Croatian the cultural relations and networking, additional cash prize for the best work. artists, namely Sanja Iveković, Damir there are examples of independent arts

Table 8. SWOT analysis of the arts market in Croatia

67 7. Development implications of current cultural policy in the arts market field REFERENCES:

As to be able to review the current cultural/creative industries and should 1.Compendium of Cultural Trends and suradnju, razmjenu i razvoj – BICCED, situation in the field and its possible stimulate public (artistic) actions Policies in Europe, Croatia: Cultural 9. juli 2011. http://birn.eu.com prospects, SWOT analysis is done in which contribute to the education in Policy Profile, Council of Europe/ 8.Jelinčić, D. A. and Žuvela, A. (2010), the Table 8. the business sphere (such as in design ERICarts. http://www.culturalpolicies. Zagreb kao kulturni proizvod, Zagreb: for ex. Dan D, Re:aktor) but should net/web/croatia.php (access: Institute for International Relations. As to improve arts market in Croatia, also stimulate strengthening of public 08.05.2012.) 9.Ministry of Culture of the Republic first, general goals as well as real museums/galleries as places where 2.Council of Europe (1998), Kulturna of Croatia (2012), Strategic Plan cultural policy and strategic planning relevant artistic values are confirmed politika Republike Hrvatske. Nacionalni for the Ministry of Culture, Zagreb: should be set. Clear analysis of the and where the state can indirectly have izvještaj. Zagreb: Ministarstvo kulture Ministry of Culture of the Republic of arts market is needed and the chaotic a regulatory role as to avoid everything Republike Hrvatske Croatia. http://www.min-kulture.hr/ situation in the field is partly due to to the market forces. In this way, the 3.Croatian Bureau of Statistics (2011), userdocsimages/NAJNOVIJE%20 the inexistance of firm statistical data state can strengthen its public function Statistical Information, Zagreb: NOVOSTI/Strateski%20plan%20 which should be regularly available. at the same time initiating the private Croatian Bureau of Statistics. www. Ministarstva%20kulture%20 Having a clear cultural policy objectives, capital investments. dzs.hr (access: 08.05.2012.) 2012%20-2014%20%20-%20 also legal regulation of the arts market 4.Croatian Bureau of Statistics (2008), revidiran%20za%20web%20 would be facilitated. It would also be recommendable to Statistical Information, Zagreb: 1604201A2.pdf (access: introduce stronger tax reliefs for Croatian Bureau of Statistics. www. 12.05.2012.) In terms of financing, as to avoid further investors in visual artwork acquisitions, dzs.hr (access: 08.05.2012.) 10.Ministry of Culture of the Republic problems in the field, visual arts sector to stimulate public-private partnership 5.Croatian Bureau of Statistics (2011), of Croatia (2012), Open Call for the should start applying for EU funds when establishing new museums Statistical Yearbook of the Republic Public Needs in Culture Programmes, instead of relying almost exclusively and galleries as well as financially of Croatia, Zagreb: Croatian Bureau Zagreb: Ministry of Culture of the on public budgets. In this field support establishment of private of Statistics. www.dzs.hr (access: Republic of Croatia. http://www.min- additional education may be offered. museums/galleries and foundations 08.05.2012.) kulture.hr/default.aspx?id=7285 Also, it would be recommendable to (such as Museum of Design, Museum 6.Croatian Bureau of Statistics (2010), (access: 15.05.2012.) exclude the state from arbitrating in of Architecture, Museum of New Statistical Yearbook of the Republic 11.Ministry of Entrepreneurship and the relations entrepreneur – artist. It Technologies, Museum of Fashion). of Croatia, Zagreb: Croatian Bureau Crafts of the Republic of Croatia (2012), would encompass stronger tax reliefs of Statistics. www.dzs.hr (access: PORTOR, Ministry of Entrepreneurship for entrepreneurs as well as the whole 08.05.2012.) and Crafts of the Republic of Croatia. business sector. At the same time, the 7.Copf, A. (2011) „Kultura u statusu http://sor.mingorp.hr/pitanja. role of the state should be stronger quo“ niko nije kriv, a ništa ne valja, htm#clanovi (access: 13.05.2012.) in education processes in the area of BIRN, Balkanska inicijativa za kulturnu 12.Ožegović, N. (2007), Milijunske

68 WEBOGRAPHY tajne trgovaca umjetnina. Nacional clanci/sluzbeni/311745.html (access: Registar udruga Republike Hrvatske. 27.03.2007. 24.05.2012.) Ministarstvo uprave. http://www.nacional.hr/clanak/32820/ 17.Zakon o porezu na dohodak. Narodne http://www.appluprava.hr/ milijunske-tajne-trgovaca-umjetnina novine br. 177/04. http://narodne- RegistarUdruga/faces/WEB-INF/ (access: 10.05.2012.) novine.nn.hr/clanci/sluzbeni/313706. pages/searchForm.jsp 13.Pravilnik o postupku i uvjetima html (access: 24.05.2012.) (access: 29.05.2012.) za priznavanje prava samostalnih 18.Zakon o trgovini. Narodne novine, Registar umjetničkih organizacija. umjetnika na uplatu doprinosa za br. 175/03 – pročišćeni tekst, 103/03, Ministarstvo kulture. mirovinsko i invalidsko te zdravstveno 170/03 i 55/04. http://narodne- http://www.minkulture.hr/default. osiguranje iz sredstava proračuna novine.nn.hr/clanci/sluzbeni/340389. aspx?id=82&pregled=1 Republike Hrvatske. Narodne novine html (access: 24.05.2012.) (access: 30.05.2012.) 119/04. http://www.propisi.hr/print. 19.Zakon o zaštiti potrošaèa. Narodne php?id=6112 (access: 24.05.2012.) novine, br. 79/07. http://narodne- 14.Reiser, M. (2000) Galeristi novine.nn.hr/clanci/sluzbeni/298920. se brane od falsifikatora. Vjesnik html (access 24.05.2012.) 27.4.2000. http://www.vjesnik. hr/html/2000/04/27/Clanak. asp?r=kul&c=4 (access: 16.09.2010.) 15.Tomljanović, P. (2011) Danas je nemoguće živjeti kao umjetnik genij, izoliran od svijeta, i baviti se usput artom. pogedaj. to 29.08.2011. http://pogledaj.to/ art/danas-je-nemoguce-zivjeti-kao- umjetnik-genij-izoliran-od-svijeta- i-baviti-se-uspit-artom/ (access: 20.05.2012) 16.Zakon o kulturnim vijeæima. Narodne novine 53/01, 48/04, 44/09. http://narodne-novine.nn.hr/

69 Anica Tucakov, MA “Anonymous said:”, Belgrade PRICE OF ART IN SERBIA UDK: 304 (497.11); 330 System infrastructure for art market development in Serbia: key problems and potentials

SUMMARY: 1. Introduction

At the time of the clear marginalization Development of the art production the rhetoric and esthetics of the social treatment of past and/or presence, of culture in general, and particularly of system in the second half of the 20th realism which idealized the world of the marking the work of official institutions. contemporary art production in Serbia, century in Serbia as well as in other socialistic revolution, supported by the Opposite to this tendency were other by the state and society, this text offers countries that belong to the area of state and political elite), we recognize artistic practices, present in public an insight into the existing state of ex-Yugoslavia, demonstrates two moderate modernism (along with the through program policies of alternative the art market in the country, with an dominant models. Chronologically gradual attenuation of social realism and regional arts institutions and active analysis of basic institutional capacities first is the model whose identity was ideology and formation of middle class support by relevant critics in academic and legislative framework. This analysis built on the idea of the centralized and civic intelligence, supported by and professional terms, NGOs and few intends to point at the crucial problems socialism, model of the self-governing state institutions and internationally foreign foundations. in the art market system, and at the socialism. However, after that, during circulating by channels of an official same time to recognize its potentials the 1990s and in the first decade of exchange, symbolizing the measure and Immediately after political changes in that can be upgraded or improved. Art the 21st century, followed a chaotic “taste of freedom”, and actually still in 2000, we can detect quite important market presents relevant part in the model of work, declaratively based the function of glorifying revolutionary change with the new executive staff process of the formulation of the new on the processes of democratization past and ideals) and, finally, late socialist of the most important cultural and economic model of cultural production and foreign models, while basically period and institutionally marginalized educational institutions, when part in Serbia. Therefore this text should still deeply rooted in the narratives artists, small in number, who turned to of this alternative art system started be perceived as part of broader, of national states. In that way overall conceptual art, politicized and critical to participate and structure the work coordinated research activities, process of new cultural model definition approach, that is to neo-avant-garde of the most important institutions analysis and recommendations in the in this period was based on frictions intermedia research practice and to (government departments, museums’ field of the constitution of a functional between ambiguous processes and their also small in number public.1 administration and other state financial model for contemporary art tendencies of the so-called transition institutions). However, results of their production in the country. and resisting traditional praxis and Sudden discontinuation of a civilized work, despite their educational and value systems. social order in the 1990s, in the context professional background obtained Keywords: art market system, visual of the civil war in Yugoslavia, labeled by on the international level, indicate arts system, cultural policy, gallery Following this socio-economic frame- the policy (and culture) of nationalism, devastating consequences of the system, intermediaries in art market, work and context, from the World War and interruption of international previously centralized cultural consumers, public and collectors, II up to the 1970s, in the contemporary cooperation and exchange, brought system, that did not initiate further legislative and value context for the visual arts production we can the development of different and development of the new and innovative development of cultural policy. distinguish briefly basic guidelines of contradictory forms of art. This period organizational and production models, the art movements. After the period of was marked on one side by vulgar and as well as drastic outcome of the an early socialism optimism (based on populist “national realism,” with banal highest social and state institutions’

1Čubrilo, J. 2009, Mapiranje savremene srpske umetnosti, Dokumenti – Umetnost i procedure, Belgrade, “Anonymous said:”

70 2. Cultural Policy and Art market development negligence regarding the development 2.1. Art market genesis in Serbia art collecting and protection practice, In 18th and 19th century Serbia, first and configuration of the new system and at the same time evident symbols of in the area inhabited by prečani (Serbs solutions concerning the contemporary Within the given social and historical the personal affinity and esthetic taste in Vojvodina, then Austria Hungary), cultural production in the past 12 context, it is not unusual that of the collector. new social and cultural development years. The field of the overall cultural understanding of art market in Serbia as well as formation of the middle production today is marginalized and struggles with misunderstanding For example, we can find data onktitors class is evident. It was a necessary neglected, left to the most violent and and suspicion. On one hand, without who were the patrons of the most notable condition to develop an interest in vulgar market forces, during the world the well established standards that monasteries in the medieval Serbia, and arts and antiquities. One of the most economic crisis and social and state would determine their most valuable their numerous treasuries rich with art important collectors in that newly ignorance. In that manner the question parameters it is very hard to work on the objects, today mostly vanished. However formed middle class was Jovan Vujić of the initiation and construction of the positive perception of significance and some artifacts survived, for instance who had the big collection of paintings possible new solutions in this area is potentials of this important part of the illuminated manuscript Miroslavljevo by Serbian artists from 18th until 20th left (once again) to the private and non visual arts system. On the other side, jevanđelje (Miroslav’s Gospel), and Century and gathered 20.000 books government sector. most part of the contemporary visual ordered by brother of Stefan Nemanja, and over 3.000 documents and letters art production participants, artists as as object of great artistic, scientific and by prominent personalities as well as well as critics, with skepticism approach cultural-historic significance. Dubrovnik numismatic collection, arms collection this field, although, quite contradictory, Archive holds a 13th century document etc. All these collections are kept in the praise the existence of big international on deposit made by duke Desa and his Library and Gallery of Matica srpska corporate collections. mother, queen Belosava, mentioning in Novi Sad, National Museum and their family collection of 21 icons, 17 University library in Belgrade. However, we should remind that golden and silver objects of different collecting, as a practice has long and purpose, 4 Gospels with silver frame, A stimulus and example for formation rich tradition in our cultural space. 30 manuscripts … Serbian medieval of collection of rarities in the newly Practically, from the start of the writer and chronicler, archbishop Danilo liberated Serbia was given by Serbian state, by the end of the XII mentions that on Stefan Dečanski’s Miloš Obrenović himself. There are century, we can identify need for court there were many icons. Vuk and documents of his collections of icons, development of material and cultural Đurđe Branković family deposited figures and engravings, minerals and forms of collections. If we track their collection of precious metals objects numismatic collection. King Milan development we can understand that decorated with gems and pearls as well Obrenović was known not only in Serbia, those were concurrently testimonies of as their collection of 70 silver glasses in as collector of contemporary French the social and political presence of the Dubrovnik.2 painters; it is known that during his

2Despotović, J. (2010), Madl’ Art Magazin, Beograd: Madl’ Art

71 2.2. Cultural policy and art market development stay in Paris he was visiting exhibitions numerous reasons, from which the Past three decades marked drastic importance. That can be seen in of Impressionists and bought their most significant was inadequate tax changes in the arts on the global the delayed legislative activity and paintings. Prince Pavle Karađorđević policy. Actually, Golden Age for the art level, reflecting broader social and situation when 1% of the total state belongs to the most educated and most market in Serbia was in the 1970s and economic alterations concerning budget is separated for culture systematic collectors of art works and 1980s, following the formation of the public participation and number and by the absence of any well- with his name and collection, before the so-called middle class that represents of art organizations and financing structured measures that can improve start of the World War II, new Museum the most important basis for the art mechanisms. Result of these changes development not only for contemporary in Belgrade was founded, with a mission market. With the arrival of insecure was the transformation of the art but for cultural creativity in general. to be the first museum of modern art. economic times this social class has organizational scheme of art scene in Central institutions of visual arts are National Museum in Belgrade keeps completely disappeared.3 Although general, with artists, art organizations, closed for years due of the negligence Erih Šlomović collection, for which the some of the most significant art financial bodies, consumers and (official term is “reconstruction”), and most significant museums of modern works by our distinguished artists are relations between them, determining that is how the state sends direct art in the world are interested. At in private possession, so it is almost how art works are produced, distributed signal to the citizens of Serbia about the end of this brief overview of the impossible to organize retrospective and consummated. the marginalized place of culture in the extraordinary and important art work or thematic exhibition without a loan society. collections through the Serbian history, from these collections, big collectors Combination of these changes we should mention notable public and art dealers have withdrawn influenced completely new models collections –Sekulić family Collection from the market in unfavorably tax of work – the ways of targeting of icons, Flegel family Collection of circumstances, forming interest groups and attracting the public, securing modern Croatian paintings, Zagorka that dictate the prices and position existence through art as occupation, and Zdravko Pečar Collection of art market in grey zone, from the managing organizational funds and African art, Collections of Serbian aspects of public interest and in black acquiring finances in a more competitive modern and contemporary paintings zone (especially regarding the sales) environment. Consideration of all of Pavlje Beljanski and Rajko Mamuzić, from the aspect of the overall visual development aspects of art market functioning today as independent arts system. Therefore the question in Serbia today therefore should be institutions. of the well documented analysis, observed having in mind dominant regulation and encouragement of real international standards as well as After the World War II, from 1980s, art market establishment, initiated by specific social context in Serbia, more private galleries, antiquity shops the state, professional institutions and where state clearly ignores the need and even auction houses started to individuals who make this system is of to create stimulating framework in work. Most of them briefly existed for vital significance. terms of cultural significance and

3Social conditions have led to the situation that two of the largest galleries in Belgrade (the Yugoslav art gallery and Belgrade Gallery), which for decades based their work on selling activities as well, in the past few years are primarily focused on presentational function and organization of exhibitions

72 3. The legislative framework of visual arts in Serbia

With the entrance of Serbia in the period The field of the contemporary visual numerous by-law acts and documents in culture, but also the reasons for its of transition, and with the political arts is treated in the Law on culture that still need to be voted or adopted. inefficiency in implementation. By changes in country at the beginning of in several articles, covering fine 2010 this area was covered by the the 21st Century, starting intention and applied arts, visual arts and Legislative framework regarding Regulations on investments in the of complete state reorganization in all architecture, art photography and the field of artists’ employment and field of culture, which are recognized segments of society brought the change digital arts and multimedia.6 participants who create and produce as expenditures in the amount of of legislative framework as well. However, contemporary art production in Serbia, 1.5% of total revenue8 of the Law on it will be evident only in some parts of New Law on culture has brought, that is law documents implementing Corporate Income Tax9 with the prior society. In the period immediately after from the aspect of contemporary employment policy in this field and opinion of the Minister of Finance and the elections in 2000, there was a state visual art production, changes in the regulating artists’ status, are based on Economy. Since 2010 the “Law on of euphoria and assurance that first of all definition of basic cultural actors the Law on work (Službeni glasnik RS”, Corporate Profit Tax”10, increased this value system that marked the dark culture and subjects, whose work regulates N° 24/05 and 61/05) and Law on state percentage to 3.5%, without serious of the 1990s will be changed for good. the area of institutions’ activity, administration (“Službeni glasnik RS”, N° consequences in practice. In fact, However, even with this atmosphere of associations, artists, cultural experts 79/2005 and 101/2007). These laws due to the very restrictive treatment enthusiasm, all governments in this past and professionals. New Law provides have abolished double employment of entities that may be recipients of period did not select in their programs possibility of two representative art in the public sector. At the same time donor’s investment in culture (only amongst priorities culture as well. associations for every area, including status of professional arts associations those entities that have as main Therefore, for a whole decade country did visual and applied artists as well. was changed, and now they are more activity registered cultural activities), not have a central legislative document However, this status can be taken independent then before.7 very few entities in the culture can concerning the culture neither strategic away. Law treats the questions of enjoy these tax deductions. The whole document as a basis for the Law. Law on independent artists’ status as well as Bearing in mind the need to stimulate civil sector in culture is not eligible for Culture4 prepared in 2007 was not voted the status of independent experts in private sector investment in the this type of tax stimulation, as well as until 2009. Until then Law on activities culture. However, it is very important development of contemporary culture, those institutions (e.g. cultural centers), of common interest in the field of culture5 to emphasize that functionality and we should note the alteration of the which are multidisciplinary in their own was active. applicability of this Law depends on Regulation on tax relief for investment nature.

4Službeni glasnik RS, no. 72/2009 5Službeni glasnik RS no. 49/92 6Unfortunately, this definition is confusing, unclear and unnecessary partially set. The term visual arts includes conceptual art, painting, sculpture, video art, performance, photography, new technology, digi- tal arts, multimedia, and raises the question why art photography is set aside as a separate area, because if you take into account as the argument its reproductive nature, the same can be said for graphics, comics, illustration, cartoon, graphic design. Of course, there are other areas of applied arts such as design, ceramics, art direction, costume design. Visual arts include installations, objects, spatial interven- tions and at the time when the Law was adopted, there was an intense interweaving of cinema and visual arts. 7The Law on Associations (“Službeni glasnik RS”, no. 72/2009) entered these novelties, in order to activate associations to organize for its members professional development workshops and training semi- nars, and to increase their own resources and create jobs. These changes have caused great dissatisfaction among the associations of artists, who felt abandoned by the state. 8Službeni glasnik RS, no. 9/2002, Article 15. Paragraph 10 9Službeni glasnik RS, no. 25/2001 10Službeni glasnik RS, no. 25/2001, 80/2002, 80/2002 – other law, 43/2003, 84/2004 and 18/2010

73 4. Professional standards and artists’ status

During the last two decades in our 400 SULUV). Of course, a large number temporary or permanent residence toward the excessive production country, consistent with changes in the of active and important authors does have chosen mostly European cities and (hyper-production) in order to provide international practice, the dominant not belong to any association, which various nomadic / migrant existence funding for projects (and honoraria for part of active artists belonged to the makes it difficult to detect them. strategies, depending on the legal artists and cultural workers), but at the model of “cultural manufacturer” or and administrative framework of the same time under-production as well “cultural author” working in the field During the selection procedure of host countries. However, as one of the and inefficiency in terms of achieved of cultural production. In fact, in the representative associations in culture, basic assumptions for the professional results and scope of the projects late 1990s, some of the artists are based on data obtained from the standards of artists, it is recognized themselves and/or their visibility. There getting closer to the model of the artist Ministry of Culture of the Republic of that individual artists and cultural is also a trend of converting artists into as a cultural worker and activist. We Serbia, 85 associations are identified in organizations, mostly independent and bureaucrats of culture.12 were able to observe on the scene the the field of art that have submitted the of small-scale, have no mechanisms parallel existence of artists who belong applications, out of which 29 received to ensure stable funding for projects In addition, artists and cultural to different generations, operating the status of representative association and maintenance of infrastructure (for workers live and work in the uncertain in continuity and actively. In this in culture. Out of this number five several reasons, one is definitely the environment, with earnings that are sense generally we can not talk about associations are from the field of lack of structural funds, in addition to temporarily and project-based. The individual, stable, homogeneous art visual arts, namely: the Association smaller and more flexible funds). Also authors and organizers usually carry practices, but only about the sum of of Fine Artists of Serbia, Belgrade notable is the significant influence of out projects for the minimum fee, which individual processes and permanent (ULUS), Association of Applied Artists management practices in the art and means that artists and cultural workers, relocations, moving through genres and and Designers of Serbia, Belgrade culture, which reduces the time required in a way, invest in their projects and media. (ULUPUDS), Association of Applied for research, projects’ design, editorial “co-finance” them (“... artists are seen Artists and Designers of Vojvodina, activities, etc.., as well as a tendency as” donors “in culture, given the low Data of the reference artists Novi Sad (UPIDIV), Association of Visual associations - Association of Fine Artists of Vojvodina, Novi Sad (ULUS), Table 1: Overview of professional associations and their members Artists of Serbia, Association of Applied PhotoKino and Video Association of 11 Artists and Designers of Serbia, Vojvodina, Novi Sad. * Association of Fine Artists of Vojvodina (which gathers 7 city unions of artists), Most artists are still residents of Serbia, * Data gathered on the basis of the official evidence of the membership Association of Applied Artists and and still have exhibitions and projects, by the representative art associations in the field of visual arts – The Association of Fine Artists of Serbia, The Association of Applied Arts Designers of Vojvodina - offers the that is, they participate in the gallery Artists and Designers of Serbia, The Association of Fine Artists of number of about 3000 registered system and art scene in the country, Vojvodina and the Association of Applied Arts Artists and Designers of Vojvodina. Big number of visual artists, however, is not registered, and artists (2000 ULUS, 570 ULUPUDS, while a number of them for their therefore the overall number of active visual artists is much larger.

11Tadić, D. (2012) Civilni sektor i Ministarstvo kulture: Nove perspektive u oblasti vizuelnih umetnosti, Kragujevac: NVO Millennium 12For the purposes of this analysis, a series of interviews was conducted with the actors on the scene. Interviewees expressed concern that a large part of activities that they carry out regularly, are related to the expansion of knowledge and implementation of activities in the field of writing contracts, administrative operations, management, marketing and PR, and that is threatening the remaining time needed for the research and creative process and reflecting on the quality of papers, projects and programs.

74 4.1. The legal framework for artists salaries and fees in the cultural sector in However, an important issue for the and profession, and administered by because of the refusal of the Ministry comparison with the amount of invested central theme of the art market is a an expert committee appointed by the of Finance to apply for independent time, effort and commitment”).13 self-employed status of artists that still association. Status is extended on the artists’ exception from current law. has to be redefined, passing special by- evidence given to the association of For now, the payment of contributions Lack of space for a professional laws within the Law on culture. Since art activity over a period of four years. with regular delays is made in Belgrade presentation and of systematic 1993, their status was regulated by Criteria, based on the new Law, were and several cities in Serbia, making it investment in contemporary the Law on independent conduct of brought by the Ministry of Culture on impossible for independent artists to art production, put artists in an arts or other activities in the field of the proposal of the representative exercise their rights when it comes to unsustainable position, and it culture,14 by which the artists have the associations, as well as the procedure of health and pension insurance, and other complicates investment procedures as right to health, pension and disability keeping records and giving a consistent rights that are caused by tax receipts. well. Quality of the art scene depends insurance, paid by the municipality in opinion. The novelty of the new Law on the impact of poor production which they are registered.15 Under the is that it will be possible to submit an The new Law in culture provides capacities of artists and galleries, as new Law on Culture, the Association appeal to the Ministry of Culture on the category of outstanding artists for whom well as the inability of state institutions will continue to determine the status decision made by the association. the Ministry will take the obligation and society as a whole, to seriously and maintain records of independent to pay contributions, which could invest in contemporary art. When you artists and experts in culture, which is When it comes to the basic salary, the eventually mean that the basic salary take into account the lack of modern a novelty and individual co-workers as Law on contributions from 2004, which for prominent artists will be increased. legislation that would encourage well. was amended and supplemented several Independent artist with the status of a investment in art, it is not surprising times, provides for independent artists taxpayer will have the obligation at the that an increasing number of local General conditions in the procedure for the lowest mandatory basic salary beginning of each calendar year to file artists is going abroad. obtaining the status are prescribed by (first 50% and then 35% of average a tax return in which opt for a certain the law, of which the most important earnings), if an artist does not receive basic salary depending on expected is that an independent artist does payments. The lowest basic salary is earnings. The payment of contributions not exercise the rights in the areas of paid by the local government. Contract (35% of average earnings) instead pension, disability and health insurance was signed with City representatives of an independent artist can make on other grounds, from the employment in 2006 providing, in addition to the City Government through the parent relationship. Specific criteria for minimum wage, two enlarged basic association, payable by quarterly obtaining the status are set out in every salaries, in accordance with years of accrued liability in accordance with art association for each particular area experience, but the agreement failed the Law on contributions for obligatory

13Dragičević Šešić, M. Verbanova, L. ( 2009) Expert Talk – Cooperation and Funding Landscapes in Southeastern Europe, Exchanging experiences – Evaluating achievements,http://www.moekulturman- ager.de/fileadmin/Material/Bildmaterial/Programm/Expert_Talk_Cooperation_and_Funding_Landscapes_in_Southeastern_Europe_Report_2010-3.pdf (pristup 20.05.2012) 14Službeni glasnik RS no. 39/93 i 42/98 15Until the new Law was adopted, every citizen of the Republic of Serbia, if engaged in particular work of art or other activity in the culture, could have been qualified for the status of an independent artist and an independent worker in the culture at the particular Art Association in accordance with the Law on independent performance of arts and other activities in culture from 1993. 75 4.2. The education system in the field of visual arts social insurance. Restrictive legislative development of the informal economy, Educational system has been business side of their professional changes in the fiscal sphere in the last with a model that is extremely recognized as one of the key problems position on the scene today, and few years have been the cause of the discouraging for market development in the system of visual arts, especially the Art history studies, which also most tumultuous reactions of artists in the field of contemporary art. higher education, as well as the overlook the need for introduction and art associations. maladjustment of educational programs of professional trainings in the field in the arts and specific professional of project management, finance and Ministry of Culture, also, in 2007 profiles with human resources need in marketing. In addition, there is a range adopted a new Regulation on the society. In the field of traditional of private faculties, with a variety of Special recognition for the excellent and respectable faculties founded by visual art programs: Singidunum - contribution to the national culture or the Republic of Serbia, and the visual Faculty of Media and Communications; the culture of national minorities. Since arts academies based on the data of Megatrend University - Faculty of Arts then a number of grants in the form accredited universities and faculties at and Design; Academy of Arts, Belgrade; of lifetime monthly payment, called the Ministry of Education and Science Metropolitan University - Faculty of a national art pensions is awarded to of the Republic of Serbia we state: the digital arts; the Academy of Fine Arts; prominent artists. Faculty of Fine Arts and the Faculty University Educons - Academy of of Applied Arts, at the University of classical painting; European University, With the Law on labor and the Law on Arts in Belgrade, Academy of Arts at Belgrade - New Academy of Art that Personal Income Tax16 presents an the University of Novi Sad, Faculty of produce an even greater number important legal framework, by which Arts at the University of Niš, Faculty of artists and professionals in the it calculates and pays taxes based of Philology and Arts at the University field of visual arts, without adequate on royalties.17 Royalty payment is of Kragujevac, Faculty of Arts at the preparation and suitable qualifications. taxed in Serbia with the nominal rate University of Priština, and the study Except for the Academy of Fine Arts of income tax of 20% (effective in program of Art history at the Faculty (Akademija lepih umetnosti), all these the interval of 10-15% depending of Philosophy in Belgrade.18 Observing educational institutions are accredited on the type of artwork and high rate the programs of these faculties, at the Ministry of Education and of standard costs). On that basis, the there is an apparent conceptual and Science of the Republic of Serbia.19 payers of royalties, many of whom are program immovability that completely independent organizations, as holders ignores the changed socio-economic And if there are programs devoted to of contemporary visual arts production, environment, and social needs. This the business aspect of the visual arts, must bear the costs, or 20% of the applies to the Academy of Art as well, the division of managerial discipline gross revenue base, resulting in the where artists are not prepared for the within the profile management courses

16Službeni glasnik RS , no. 24/01, 80/02 i 135/04 17In accordance with Article 52 to 60 of the Law within the group of incomes from author’s and related rights and righst of industrial property. 18Reports on accredited faculties: www.kapk.org

76 5. Infrastructure of the art market system educated at private universities, 5.1. Institutional requirements for houses and audience. However, communicative instrument in this is set incorrectly, which causes a the art market development each of these components does cycle with the audience. However considerable number of graduates not meet the necessary conditions media does not perform this role and with useless knowledge. Poor insight Art market system of a visual arts for the functioning of the market therefore expansion of audience as and nontransparent assessment scene is made of institutions such as system, and necessary interaction visitors, buyers and consumers of art / of the quality of education and the museums and galleries, which provide and interdependence of these actors, collectors, as an ultimate goal, remains quality of teaching in private and state the communication between the art which is of crucial importance, does unachieved in this area. universities are the main determinants works and the public and with their not exist. Finally, critical role of the of the educational system of higher institutional authority carry out the role media is clearly identified, as the education related to the field of of professional arbitrators who verify most influential and most important contemporary visual production. the value of art, along with curators Faculties, under the designation of and intermediaries, followed by critics Table 2: Overview of actors at the art market in Serbia, 2005-2011. “university autonomy” hold “position of and the media that distribute relevant inviolability of the program assessment, information of different character the quality of teaching and the value of and purpose, with their primary role degrees.” Educational system should to establish communication with the also introduce a different concept of audience, then art dealers and auction required art education in the state houses, in order to define their market education policies at all levels, from value, and finally and most important primary schools. Finally, commitment circle of the audience, including of constant professional development, collectors who conclude this rough so called lifelong learning, should be outline of a functional art market institutionalized. system. Source: Ministry of Culture, Media and Information Society of the Republic of Serbia, Reports on annual Open calls for contemporary art production 2008 – 2012, accessed on 10.06. 20120; Tadić, D. (2012) Galerijski i izložbeni prostori savremene vizuelne umetnosti u Srbiji, Beograd: Anonymous said: pp. 64-72 Based on the assessment of the * The data refers only to the galleries and exhibition spaces that were supported on the annual Open calls for contemporary art at the Ministry of Culture of the Republic of Serbia. It is estimated that today there are about individual components of this system, 250 galleries, based on the E-Culture database on the Serbian culture, the project of the Institute for the Study we can conclude that the necessary of Cultural Development of the Republic of Serbia. Official data on private galleries is not available, and based on infrastructure, in the technical sense, the review of the structure of supported galleries, 11 galleries and exhibition spaces are founded by municipalities, cities or Republic, 17 by associations of citizens and 5 founded by individuals / private initiatives. exists for the productive art market ** Included are gallery programs supported annually, as well as individual programs. - art production, museum system, *** The data refers only to auction houses. There are no official figures on art dealers, although unofficially it refers to the number of about one hundred art dealers operating in Serbia. gallery system, media, auction ****The data refers to the supported art colonies, while about 200 is registered

19Positive example that has recognized new business and professional skills in contemporary art production presents Master studies Cultural policy and Management at the University of Arts, Belgrade and French University Lyon 2, internationally recognized program, realized in cooperation with UNESCO and CEI, obtaining a status of UNESCO Chair in 2004.

77 5.2. Museums

And in more developed markets of this today. Besides the problems that occur In order to determine significant the period from 2008 to 2012 (and type, the basic assumption for the due to the unfavorable factors (e.g. institutional resources in the field of still continuing) carries out exhibition constitution of a price for a work of economic underdevelopment), global art market, one of the key requirements activities solely in the Salon of the art comes solely based on customer state of crisis, or so-called crises of art, of this system present the most Museum of Contemporary Art and demand, and collectors. The art time of the (post)post modernity which important museum institutions, which, renovated Gallery of Rodoljub Čolaković market is the only market where the abolishes the criteria of art works’ among other things, act to preserve Legacy. Enthusiasm, high professional value (expressed in monetary terms) evaluation, and the absence of the and present the most significant standards, contacts with partners from is obtained by indirect negotiation market which could make judgments art values of a country and broader abroad and ambitious plans, which between the seller and buyer (in well about the artistic value - equally environment, and accordingly, in terms museum’s new management team ordered societies through auction obstruct the work of those who need to of professional representation (in implemented from 2001 until 2008 houses, gallery owners and art dealers), develop it. regular circumstances) to guarantee have ceased. or a museum curator who is completing the highest valuation of artistic museums’ collections. In addition to this, the scene is achievements, which inevitably has a In the meantime, this institution made influenced by financial circumstances, profound influence on the development clear deflection from the devastating The views on the character of or by functional part of the financial and structure of the art market. program and production policy from the contemporary visual art scene in system and characters of the existing 1990s, creating stable program profile, Serbia are relatively divided. Some Foundations, willingness of “market Within the institutions founded by the relying on a unique status of cultural representatives consider that the tuning” which in our situation means to Republic of Serbia, which are related institution in Serbia, that was built in gallery scene is rich, diverse, active, and fit their work in the direction of existing to the contemporary visual art, we 1965 specifically to be a Museum of vital, that it does not lack enthusiasm, financing sources (socially engaged state: the Museum of Contemporary Contemporary Art.20 while others emphasize the problems art for the foundations, etc.) and not Art, Museum of Applied Arts, Museum of the absence of major breakthroughs, so much in classically understood art of Yugoslav History and the Museum All this was followed by establishment names and appearances, excessive market, which is flattering mostly in of Naïve and Marginal Art. At the of the NGO scene, as equal participants production of works of average medium or format. level of AP Vojvodina we can identify in the cultural life after 2000, until quality, apathy that prevails among the Museum of Contemporary Art of then only a critically strong voice artists and curators, frequent gaps Vojvodina, the Museum of Vojvodina, from the margins, who took over the that due to financial constraints arise and the Memorial collection of Pavle administration of the central museum between good ideas and mediocre Beljanski. Central institution of institutions dedicated to contemporary implementation. It is certain that both modern visual art in Serbia, Museum art, including MCAB. Negligence lines of thought are rooted in real, of Contemporary Art in 2008 began visible through the marginalization of objective situation of the art scene the process of reconstruction and in the museum and the difficult process

20Great retrospectives, hosting of international collections, such as the Stedelijk Museum collection in 2004, organization of large exhibition projects, such as the exhibition “About Normality - Art in Serbia 1989 - 2001”, which had a huge international success and focus on high production standards, design, comprehensively conceived work of contemporary cultural institutions, including educational activi- ties, work of the Museum library, Youth clubs … present the main determinants of the ambitious work of this institution.

78 5.3. Gallery system of reconstruction of the Museum, Macura, which opened in 2008 in Novi Besides the museums, galleries have within institutions, because they had indifference of all relevant stakeholders, Banovci, as one of the largest private the central role in the art presentation to be financed through the institution affected the surrender of a unique collections of neo- avant-garde art activities, and also in the development of state Open Calls, fundraising and moment and existing efforts that could in this region. Finally, along with the of the art market. In fact, despite sponsorship, while public galleries had have establish necessary continuity presentational verification, significant the intensive use of the Internet and most of their costs covered as they in the work of this institution, as the for contemporary art production, virtual space, as well as other forms of founders are the Republic and state central institution for contemporary art expertise in this area, that is, official, presentation of contemporary art, such institutions. in the region. Meanwhile, neighboring documented evaluation of art works as different in situ projects, galleries countries completed the construction necessary for the functioning of the and exhibition spaces, however, remain Galleries now active on the scene are of new institutions of contemporary art, art market, does not exist. Museums the most important segment of the facing many challenges and problems. dominating the region since 2008. usually have the function of performing art system for presentation of visual State galleries that are funded these activities. However due to the arts and multimedia, to support and entirely from the budget are troubled As a phenomenon of particular circumstances, apart from only a nurture artists’ careers, for audience with problems of inefficiency, staff importance for the development of handful of independent curators, whose development, educational activities personnel and program inconsistency. visual arts in Serbia should be noted the authority rests on a monopoly staged and market development of visual arts. Galleries that are forced to be financed first registration of private museums on a decades-long practice, museums from their own resources and on the in Serbia - Zepter Museum, which was do not perform this function in the In relation to their legal status in Serbia basis of sponsorship and fundraising opened in 2010 based on the Zepter art market system, and that calls into operate galleries / exhibition spaces are facing high costs of production collection from 1994, as well as question the very base - authenticity of that have a status of a legal entity and uncertainties of economic nature. activities and work of the Museum21 the work. (municipal and private galleries), which However, freedom, speed and creative operate within a legal entity (mostly implementation of programs greatly

Table 3: Sources of funding for galleries in the period 2008-2009. galleries in the cultural centers), help to overcome these economic galleries / exhibition spaces of cultural disadvantages. These galleries are institutions, established by the state, bolder and more efficient and some of city or municipality or established them have already established links by the association or an individual of international cooperation and that (another party).22 After 2000, galleries is why cultural policy has to pay more have emerged with defined concepts, attention to the development of the programs and strategies. However, they gallery system in the private sector. Of Source: Institute for the study of cultural development, Cultural policies at the district level of Serbia, 2010 failed to gain equal status with state critical importance is the role of galleries Research was conducted on the basis of 15 mapped galleries with the status of independent cultural institutions, founded by the local governments galleries and galleries that operate for development of artists’ careers and

21Actually it’s an impressive collection of artworks from the period of avangarde in 1920s and 1930s and modern art from 1960s and 1970s, produced in the territory of former Yugoslavia and presented in the facility in Novi Banovci 22Mihaljinac, N. (2012), Galerijski i izložbeni prostori savremene vizuelne umetnosti u Srbiji, Beograd: “Anonymous said:,”

79 as their marketing representatives as their legal status, we can identify 17 Based on the survey conducted for and artist. Besides that, a problem of well. The impoverishment of a society, galleries and exhibition spaces which the project “The gallery and exhibition misunderstanding of contemporary art economy and individuals all together are founded by civic associations and spaces of modern art in Serbia” among the buyers is presented, so the has caused this unprecedented decline five gallery spaces where the founders (Mihaljinac, 2012) it is evident, by the most intense is the tendency of selling in the value of art works, forcing artists are individuals or private initiatives.24 prevailing attitude in the professional works of art by established artists, to withdraw from the legal market This indicates a continuing trend of community and among stakeholders of who created in the interwar period. and to avoid the usual sales through the agile cultural professionals from the art scene, that galleries have almost Stevan Vuković, a representative of galleries, resulting with the continuing the civil sector in fundraising activities no impact on the pricing of art works. the Student Cultural Centre Gallery, down fall. In stable societies, than their counterparts in the public This function was taken by private Belgrade concisely described the commercial and artistic value of works sector, as they do not have consistently collectors, and trading is done almost condition of the domestic art market: is very close, while in poor areas, like provided funding for the implementation without any mediation by the galleries, “The main problems is the lack of the our own, is very different, and to the art of their annual programs. It is strikingly which indicates the absence of legal market criteria for evaluation, [...], and disadvantage. The sales galleries are small number of private initiatives and regulation for the art market or legal relatively low prices, which are dictated therefore increasingly seen as a totally private galleries and exhibition spaces. regulation of artworks sales. So, by the by demand, in the sense that collectors unnecessary part of the system. However, in these working conditions, opinion of almost all representatives of know that they can buy works on because of an underdeveloped the galleries in this study, black market symbolic prices.“25 If we look at the available statistical market for contemporary art, private dominates this scene and galleries do data, obtained from the projects business initiatives are often, similar not have the authority, primarily legal, However, it is obvious that in these supported by the annual Open Call to the civilian sector, reduced to the to act in the formation of price policy. extremely unfavorable conditions we set by the Sector of Contemporary enthusiasm of people who run those At the same time, galleries have various have to look for some new ways of art production and creative industries spaces. difficulties in collaboration with artists, survival and regeneration of gallery of the Ministry of Culture, Media and when it comes to selling their works. sales, especially bearing in mind that Information Society,23 according to Noticeable is the division of artists good part of the renowned artists that hold high prices of their works (so- remains outside the market system of Table 4: Structure of galleries’ costs for the period 2008-2009. called exclusive artists) and the artists art, mainly due to the widespread idea with underestimated works, resulting that their work is not subject to sales. in lack of valid criteria of evaluation. It often happens that the gallery finds According to Ljiljana Tadić, owner of Source: Institute for the Cultural Development Study, Cultural Policy at the level of districts of Serbia, 2010 a buyer for one price, and then that the “Zvono” gallery, one of the few Research was conducted on the basis of 15 mapped galleries with the status of independent cultural institutions, amount is drastically reduced in the influential galleries regarding its founded by the local governments direct agreement between the buyer program profile, and efforts given to

23Tadić, D. (2012) Galerijski i izložbeni prostori savremene umetnosti u Srbiji, Beograd: “Anonymous said:” 24In order to strengthen private initiatives in this area, they should be named: Gallery Zvono, Belgrade; Chaos Gallery, Belgrade, Studio Otklon, Belgrade, Gallery Rima, Kragujevac, ITS-Z1, Ritopek 25Tadić, D., Mihaljinac, N. (2012), Galerije i izložbeni prostori, Beograd, “Anonymous said:”, p. 100

80 5.4. Intermediaries - media and critics 5.5. Awards develop the art market for artists they The role of the media is one of the Beokult), the second channel of Radio Awards, like museum’s verification, represent, our art market does not key segments of the arts system, Belgrade and RTV Studio B devote a are directing public attention to the exist. For freelance artists it is very articulating a critical attitude towards little more attention to contemporary achievement of certain authors. difficult to make a living out of their the contemporary art production, visual art in the form of a more thought- During the last decade, in the field of art and, of course, they readily agree fostering a critical and theoretical through access and serious analysis. contemporary visual arts production to sell their works at low prices. In that thought, with a significant influence It is necessary to carry out a thorough stands out award Dimitrije Bašičević way they create a problem for younger on the development of the art market, reconstruction of the media approach Mangelos,27 established in 2002 by generations, because if renowned but crucial in terms of influencing to contemporary art practice, firstly to The Center for Contemporary Art in artists, with a thirty year long careers, the judgment of the public, as one bring back newsrooms for culture, ruled Belgrade and The Foundation for a settle for lower prices, what artists who of the most important mechanisms out by most of the media, and then to Civil Society (FCS) from New York, as are just building their careers may be of communication with the public, or cover a wide range of necessary media part of a regional project Young Visual seeking. In front of the gallery owners as one of the channels of audience activities - from regular announcements Artists Awards (YVAA). Since 2006 they are holding a false level, and so the development. In Serbia, the current through analytical reviews, interviews, Context Gallery and Art Association vicious circle is created. And customers critical thought related to contemporary specialized programs and to introduce DEZ ORG Belgrade are new organizers do not want to purchase in the gallery visual production is hermetic, elitist, professional art criticism to a wider of the award. Agreement on the new as well. In order to establish a single designed exclusively for experts. audience. This would create relevant way of organization and operation of market, one must respect the chain Holders of media coverage (print and public opinion and better environment this award, signed in 2011 between artist-gallery-buyer. An artist without a electronic) assign to the visual arts very for both development of visual arts and central institutions of visual arts in gallery does not exist, because an artist small space and sporadically, mostly the art market, and the development of Serbia, testifies about the intention who does not exhibit has no career.26 in form of an announcement with a society as a whole. to establish this award as the central stereotype representation (except award in the field of contemporary for the monthly magazine for the visual arts productions in the country contemporary art scene “Art Fama”). (similar to Turner prize in England).28 Only a small number of daily newspapers (among which the newspaper “Politika” Based on their strong profiles and with a constant coverage of visual importance, we can also distinguish art scene and placement of critical The Annual Award of Politika for Fine reviews), magazines (weeklies VREME Arts (from Vladislav Ribnikar Fund), the and NIN), the editors for culture at the October Salon Awards, and Art prizes Radio Television of Serbia (once a week for a drawing bestowed by Vladimir in specialized programs - Metropolis, Veličković Fund, granting prizes by

26Ljiljana Tadić, Deset godina Zvona, VREME 676, 18. December 2003 27The award is named after major artist, the founder of conceptual art practice and historian from former Yugoslavia, Dimitrije Bašićević Mangelos. 28This Agreement have signed the Museum of Contemporary Art, Belgrade, Museum of Contemporary Art of Vojvodina, Novi Sad, Center for New media_kuda.org, Novi Sad, Foundation for Civil Society, New York, NY, USA, the Fund “Ilija & Mangelos” Novi Sad, “Remont” - Belgrade Independent Art Association and an association of artists DEZ ORG, Belgrade 81 5.6. Art dealers/Auction houses 5.7. Independent scene

Chaos Gallery, or Mića Popović Art Since 2000, three private auction houses crucial for the further development of the Independent cultural scene in the visual arts Award, presented by the Promotion of opened in Belgrade. Auction house “Madl’ art market. And it is also one of the sensitive was the holder of the contemporary art scene Creativity Fund from Belgrade. Art” works since 2001, the auction house points of possible improvement of the art during the 1990s and during the first decade “Binom” since 2004 and “Arte media” since market in the country. It seems that about of the 21st century, providing a significant Henkel Art Award for 11 years awards 2009. Some owners of private collections one hundred art dealers in various domains part of the visual culture production and arts artists for outstanding achievements opened galleries as well, like Aleksandar of art market (modern and contemporary art, in Serbia. At the end of 2010 representatives in visual arts and innovative work in the Milojević who opened “Rima” gallery. Quite period between the wars) is active today,31 of the independent cultural scene32 have field of painting, drawing, photography, important date is also the beginning of work with domination of completely arbitrary and released a Declaration calling on the video and installations with 7.000 euros of the first private museum in Serbia - Zepter vulgarized relations between works of art competent authorities on a dialogue on many prize and the possibility of organization Museum in 2010, as well as activities of the and artists, on one side, as well as customers, issues. That marks the beginning of their of two exhibitions for the award-winning “Vujičic Collection” and “Collection Trajković” i.e. collectors, on the other side, dictating joint action initiated in order to strengthen artist, who can apply from 23 countries Foundations, as only registered foundations unrealistic prices, with no established cooperation and protect their own interests, of the Central and Eastern Europe. The at the Ministry of Culture, Media and criteria and respect of basic parameters in public interests and promote cultural life in award is organized in cooperation with Information society. this area. The selling process is still legally Serbia. Independent cultural scene has 76 KulturKontakt Austria and the Museum invisible, conducted without any tangible, members from 16 cities and towns across of Modern Art in Vienna (MUMOK). Named auction houses are providing documented regulatory acts. The practice of Serbia, and more than 2.500 artists and Winners of the Henkel Art Award and a services concerning the market value and such unskilled and opportunistic art dealers cultural managers. It produces each year number of finalists from previous years authenticity of works of art, with certificates, seriously jeopardizes the rights of artists, between 1.200 and 1.500 programs, have had the opportunity to participate mediation in trade, purchase and sales buyers and sellers, and collectors, forming including a large number of important in international exhibitions, and thus of arts, consulting services regarding the phantom prices of art works, conducting exhibitions in the field of contemporary visual award opened for them the doors to creation of collections, and evaluation of the conditional sales, circulation of forged production.33 The programs are examples international success.29 investment in art market (art investment).30 artworks and removal of valuable art pieces of the independent scene innovative and Expert teams of these organizations mostly out of the country. It is therefore necessary socially engaged cultural production in Serbia, consist of art managers and art historians. to establish special study programs and followed by tens of thousands of people, and However, apart from several prominent art specialized trainings necessary to obtain its international cooperation contributes historians who perform this type of expertise, professional certificates, harmonize them greatly to the integration of Serbia into the in Serbia there are no recorded studies on with EU and international standards and international cultural trends, changing the which would be possible to acquire adequate current international practice and thus country’s image and position itself as an active educational and professional qualifications promote and provide professional expertise member and an important destination, on the necessary for experts in this area, which is in this area. international cultural map, and in the region.

29For more information see: http://www.henkel.rs/henkel-art-award-1857.htm 30As an example of good practice we should emphasize efforts of Spomenka Kratovac Popović, who since 1999 follows the official auction results and publishes them in annual publications 31Information based on interviews with actors from the art scene 32Source: www.nezavisnakultura.net 33Source: Deklaracija nezavisne kulturne scene – http://www.seecult.org/files/DEKLARACIJA_NEZAVISNE_KULTURNE_SCENE_SRBIJE_0.pdf 82 5.8. Art Colonies 5.9. Contemporary Visual Arts Manifestations / Art Fairs

Art colonies present important cultural importance is the fact that art colonies Events present significant segment Salon was changing the concept and actor in the visual arts scene. In Serbia are linked with the production of art of contemporary visual production. organizational forms (decisive authority there are more than 200 registered art works by contemporary artists, which According to the Agenda of events by over the concept has the Council, colonies, and it is believed that their is one of the biggest problems that the the Institute for the Study of Cultural consisting of recognized experts in the number is actually much higher.34 The authors here, especially younger ones, Development35 around 950 cultural field of visual art - art historians, art tradition of art colonies in Serbia is very face in this difficult financial situation. In events are annually organized in Serbia, critics and artists, appointed by the important. However, since their form this way, the organizers of art colonies out of which about 150 belong to the City Assembly of Belgrade). was not in accordance with the needs directly assist artists in production and field of fine and applied arts, though of contemporary art for a long time, realization of artistic ideas. It is important in the agenda are not included some During the past decade there have been this tradition should be systematically that art colonies are mostly organized of the most popular, such as Mixer, several serious transformations of the supported, its further development and outside the major cultural centers and Belgrade Design Week, etc. Guided by Salon. First, since 2001 art director transformation in order to be closer to urban areas, such as Belgrade, Novi Sad the selection of events that have been of the proposed concept of the Salon the contemporary cultural and art trends and Niš, to last from seven to ten days, regularly supported by the Ministry of was appointed. By 2005 this was a (Ministry of Culture of the Republic of their participants - artists, curators, Culture, Media and Information society, manifestation presenting exclusively Serbia in 2002 opened for the first hosts, organizers, consumers – develop and their significance, continuity art scene in Serbia and Montenegro. time narrowly profiled Open Call for Art tighter relations, thus establishing a kind and achievements, and based on the Then the Belgrade City Assembly and Colonies within the Annual Competition of small communities, and support the analysis of annual production of visual the Council opted for the international of the Sector for contemporary development of these unusual events, arts events that have other sources of character of the future Salons, that art, cultural industries and cultural valuable from the decentralization point funding, but undoubted influence, we caused every year great controversy in relations; in the past decade, on the of view in terms of culture and cultural should single out the following: the professional community.37 Based average, Ministry annually supported tourism. Art colonies such as the on the new concept October Salon approximately 15 art colonies). International Art Colony “Bakar”, Jalovik October Salon36 is a representative in recent editions became more an Art Colony, Colonies in Sićevo, Lipovac, manifestation in the field of visual arts, annual international exhibition, which Art residence and work in the colonies Zlakusa, International Symposium of whose founder and patron is Belgrade often does not introduce to the public have multiple significance for selectors Terracotta sculpture Terra, through City Assembly. With a long tradition current international art production or and artists / curators and, consequently, utopian production space offer new (founded in 1960) has become a even domestic. On the other hand, high for many of aspects of the art scene. The models of work that can significantly benchmark of Serbian culture, a production standards set unique model process of artistic creation becomes participate in the transformation of the representative review of artists in for all other events, in the absence visible in almost all stages; training current situation and identify successful visual arts and a great exhibition of the projects by the Museum of sessions organized for managerial skills new models. whose selectors are prominent Contemporary Art. and audience development. Of no less experts in this field. During its history

34Tadić, D. Gruden, M. (2009) Likovne kolonije u Srbiji-Konkurs Ministarstva kulture (2002 – 2008), Beograd.: “Anonymous said:” 35Source: Agenda of manifestation by the Institute for the Study of Cultural Development http://www.zaprokul.org.rs/AgendaManifestacija/Search.aspx 36www.oktobarskisalon.org 37See more: Anda Rotenberg 2004, Darka Radosavljević 2005, Rene Blok 2006, Lorand Heđi 2007, Bojana Pejić 2008, Branka Anđelković 2009, Juan Puset i Selia Prado 2010, Galit Eilat i Alenka Gregorič 2011. 83 In addition to this central event of fine dedicated to a presentation of works of the model of the October Salon, and is three art disciplines. Since 2012, this arts, we should emphasize the high applied arts, but in the last few editions organized by invitation calls and based event significantly changed its form, profile of Nadežda Petrović Memorial is losing its conceptual consistency, on competition. becoming the “Festival of Festivals” and in Čačak, the oldest and one of the and largely relies on musical program. combining 14 existing festivals. most important art events in the former The most important achievement of Golden Pen (Zlatno pero) of Belgrade Yugoslavia. It was founded in 1960, this event is, without a doubt, mass is an annual international exhibition The Night of the Museums is one of the and as the name suggests, as Memorial audience, extensive media coverage of illustrations, which continuously most famous cultural events in Serbia aims to respect the original ethical and initiative to revitalize neglected contributes to the high quality and most visited cultural event, which is and aesthetic principles of Nadežda neighborhoods and architectural of the illustrations as well as the presented in a popular way, promoting Petrović, the founder of modern Serbian entities.40 Belgrade Design Week is achievements of the media itself projects in museums and galleries. art, which was a great supporter of the an influential annual conference which in our society, presenting relevant So far, there were 6 Museum Nights, idea of Yugoslav cultural unity. In fact, aims to bring together creative industry selection of international trends and which now cover exhibitions spaces and until the beginning of the civil war in and the business world, and covers the diversity of artistic expressions, audience in 65 cities and towns. the former Yugoslavia, this event has fields of design, architecture, graphic performance techniques and purposes, respected tradition and the spirit of design and branding, communication, as a comprehensive review of the Real Presence is a manifestation of the First Yugoslav Art exhibition from culture, education and promotion, media place, importance and development the international character based on 1904. For more than five decades, and publishing, entrepreneurship. of illustration as a medium. This workshops with young artists and Memorial and Art Gallery Nadežda manifestation consists of annual students from various art academies, Petrović positioned Čačak as important Art Biennial and Art Salon of awards as well. held in late August in Belgrade. Art place for contemporary visual arts that Cultural Center Pančevo41 present workshops include a large number follows the annual contemporary visual two influential events in relation to BELEF (Belgrade Summer Festival), of artists, offering a wide network production at home and abroad.38 contemporary visual arts. Art Biennial Belgrade is a multimedia festival of of contacts, cooperation models was founded in 1981 as Yugoslav theater, music and visual arts. The and exchange of new initiatives, The May exhibition of ULUPUDS Sculpture exhibition (the official name founder of this manifestation is the presentations, marketing and members is a traditional exhibition, was Exhibition of Yugoslav Sculpture city of Belgrade. It is, above all, the promotion. The aim of this artistic and which is held annually and presents in Pančevo) eventually transformed festival of productions, which have educational event, organized by the a major event for applied artists and into an international exhibition of visual their own ambient performance during Independent Cultural Association is architects.39 In this area Mixer festival arts, placing itself at the top of events the summer months. Belef provides to raise awareness about artistic and also should be noted, held in the that present new trends in fine arts. Art exclusive and premier art productions of educational standards of students and same month. This festival is primarily Salon was founded in 1972 following domestic and international artists in all professional artists.

38See more: www.nadezdapetrovic.rs 39See more: www.ulupuds.org.rs 40See more: www.mikser.rs 41See more: www.kulturnicentarpanceva.rs

84 5.10. Private collectors

Videomedeja Festival, Novi Sad is As a very promising project should be Ineffective presence of relevant Trajković: Private Suite,45 Collector an international video festival that for emphasized Laser summit of cheap institutional conditions in the field as Curator of the Auction house Arte 15 years brings together international prints43 organized by the Art collective of visual art systems, both for the media,46 Collection of the Macura and regional artists. Its focus is on art Turbotomorrow, in cooperation with the development of the art market, and for Museum,47 Art Collection of Vujošević projects that combine image and sound, Center for Cultural Decontamination. the maintenance of the system of art family,48 etc.) in the last few years advanced communications, from video So far three summits were organized in general, emphasizes the importance demonstrate significant activity art, digital animation, media installations, and the goal of this event is that through of private collections, which may of private art collectors in Serbia, to advanced technology in art.42 the new concept of communication represent a fair overview of some positioning themselves as significant with the public and collectors produce particular periods in arts. factor in the art scene in Serbia. They Finally, annual exhibitions of the works of art widely accessible for all are seen in a different way than in Faculty of Fine Arts and the Faculty of (the price of a single print was 1 euro) Existing examples of private collections previous decades, when extensive Applied Arts, present an annual review and to offer a possible financial model in Serbia show that the collectors who private collections represented more of works by art students (including for the art market. The project has have supported their contemporaries, an excess than a common phenomenon. postgraduate and doctoral studies). launched urgent problems regarding buying, selling and exhibiting works market evaluation of individual works of by different authors, often played Among other things, a public However, there are no classical art art and authors, primarily in the field of an essential role in the promotion of demonstration of the scope and fairs in Serbia, with a selection of graphic design, art market as a whole, individual artists and art genres, and importance of these collections showed galleries representing their artists, and as well as existing and new collectors. therefore it is reasonable to conclude that personal choice of collectors, who as a meeting point for artists, gallery that collector of contemporary art have no Acquisition Commissions, owners, collectors, and the public. participates in the creation of art curators and so on, proved to be more For the first time the Belgrade Art history just as much as artists, scholars, flexible and efficient mechanism for Fair, in cooperation with the Embassy critics, curators and public institutions. the purchase of works of fine arts, and of Sweden, is scheduled for October that in the past collectors responded 2012. Several exhibition projects of the most quickly to buy works of art for private important private art collections in collections more than official cultural Serbia (Vujičić Collection,44 Collections institutions. In addition, it is quite

42See more: www.videomedeja.org 43See more: www.laserskisamit.com 44“Enformel from Vujičić Collection”, Galerija 73, Belgrade, September , “From the historic enformela until the postmodern neoenformel”, Gift Collection Gallery Rajko Mamuzić, June 2010, “Collection Vujičić – Triumph of contemporary art”, Museum of contemporary art of Vojvodina, Novi Sad, June 2010., “Private stories, alternative attitudes”, Modern Gallery Lazarevac, May 2011, “Sequences of modernism. Vujičić Collection of Serbian art of the 20th Century”, Gallery Matica srpska, Novi Sad, September 2011. 45Collection Trajković: Personal suite, exhibition, Museum of history of Yugoslavia, April 2012. 46Arte Gallery, , Belgrade, May 2009 47The name of Vladimir Macura was first noticed at the exhibition “Surrealism in Belgrade: art of the impossible” in Belgrade’s Museum of Applied Arts (2002) where among others, were presented works from his collection. Two years later, in the Art Gallery “Cvijeta Zuzorić” Macura presented works of fine and applied art of avant-garde movements of the 20th century, and in the Museum of Applied Arts in Belgrade presented part of his collection in the exhibition “Everyday life of chairs / Gorgona” (2006). 85 certain that private collectors during formats that were once reserved for influence the recognition of individual market are not only experienced the 1990s were probably the only museum collections and public spaces. artists and art practice in general. It collectors, art dealers and gallery ones purchasing artworks, so that So these private collections today is visible that private collectors from owners, critics and museum workers, now in private collections are present present not just the list of names Serbia participate in auctions in Europe but the broadest range of ordinary art significant artworks that certain of good artists and their average and around the world as well, bringing lovers, passionate experts, whether museums are missing and therefore works, because “everything good is in back significant art works to Serbia. work of art is seen only for its artistic all future retrospectives of individual museums,” but relevant achievements Finally, it is important to note that importance or for its material value. artists or particular periods certainly of art scene. However, what is existing private collectors treat their They actually provide the driving force can not be organized without loans important is that private collections collections by professional museum for the entire art system. These small from these collections. in Serbia, such as collections in the standards, collect documents, historical owners, their presence and participation Private art collections that were formed world, driven by a passionate interest materials, professional books, journals are almost crucial for the maintenance in the first half of the 20th century, for certain areas are not subject to the and present irreplaceable resource of this sensitive organism, burdened, primarily collections of Pavle Beljanski requirements of public institutions that for the development of contemporary especially in isolated communities like and Rajko Mamuzić, gift collections must have all referential artists’ works. visual art in Serbia. Private collectors our own, with many difficulties, of which of the National Museum in Belgrade However, they are very important for have begun to associate with one the most important one is inability to and Jaša Smodlaka and Dragoslav the scene because they continue to another, especially with collectors from reach big number of these true lovers Damnjanović, determined the form and passionately purchase works of art for the region. Therefore art scene and of art. So the key question not only the method of creating private collections. their collections, reflecting the attitude market tend no longer to be limited to development of the art market in our In Serbia today they represent the best and character of the collector and they local. community, but for the system of visual way to continue the tradition of private guarantee further development of the arts in general, is - How to enlarge the collections with due respect for the art market and contemporary visual art In late 2009, as a specific and important circle and number of ordinary art lovers? heritage. scene in general. actor in the contemporary visual art - as regular visitors of exhibitions and scene appears Vujičić collection with as the widest circle of art collectors. On the basis of the character of these In this process, besides several private works of art by local artists from the impressive collections it is interesting collectors and auction houses certain late 20th century. Vujičič Collection to note that private collectors began private galleries are involved as well, Fund nurtures theoretical discourse to create collections that had not artists themselves, and independent and critical thought, and represents been typical for private collections, art dealers, so together they can affect significant innovation in the field of both in choice of the subject (avant- not only the healthy pricing through publishing as well. garde, conceptual art), and the content the purchase of works of art, but (photography, sculpture, video) and also through the choice of authors to However, the main factor in the art

48Belgrade Gallery, March 2009 - selection of works by the most prominent representatives of the Serbian painting of the twentieth century - Petar Lubarda, Sava Šumanovic, Jovan Bijelić, Zora Petrović, Milo Milunović, Marko Čelebonović, Ivan Tabaković, Leonid Šejka, Ivan Radović …

86 6. The Corporate Sector and Art Market

Connections with other sectors - collapse, sponsors have ceased to be events or exhibition spaces, resulting in paintings, sculptures, installations tourism, education, economy, science, only a problem. They have become lower art production, at the expense of and photographs by renowned and etc are vital for the development the solution. Therefore, in this social commercial sponsors - customer service emerging young artists as well, as a of the visual arts scene. A number context, in the area of art production promotion. reference overview of Serbian art of of unfavorable circumstances have financing, it is of great importance to the recent period. Immediately after resulted in stagnation and degradation connect with the corporate sector and On the other hand sponsor - collector the establishment of the Foundation in of contemporary cultural production, to establish and manage sponsorship model demonstrates not only 2007, representatives of the company and finally in financial humiliation. strategies and business relationships. conceptual, but business prudence as came into contact with Remont - This situation developed a need for In fact, the realization of sponsorship well. Impressive collections of paintings Independent Art Association, in order establishment of partnerships and can be seen as evaluation tool for the of several companies were known in to buy works of art for company’s active attitude towards existing and success of the action (and networking) former Yugoslavia, like Jugoeksport for working premises. However, according potential participants in the cultural in the field of the market. Therefore, example, today part of the collection to Darka Radosavljević-Vasiljević, scene. Therefore many organizations to rely solely on government financial of the Museum of Belgrade. We have Head of Remont, original idea, based choose the connecting strategy. support, without the development of occasionally witnessed presentation of on the concept of “art for offices,” soon When it comes to visual arts, a sponsorship strategy, can cause the NIS Jugopetrol collection. However, we developed into a more complex and primarily referring to the professional difficult financial position of the actors mostly don’t know much about the fate ambitious project - creation of collection collaboration with other galleries in the system of visual arts. of these large collections. Collection of art works that characterizes the and cultural institutions, which is not of Telenor Foundation today testifies Serbian art production in the period at the level of simple exchange or Basic sponsorship models today, about the corporate collections of after 2000, confirming historical borrowing of technical equipment, identified in the art system are:sponsor – contemporary art in our country, like continuity and establishing necessary that implies a common project design reputation user and sponsor-collector.49 the first example of a systematic context. Realization of this idea had and management (partnership/co- For the first model is distinctive investment of a foreign company in positive effects in several aspects. The production), and association with a goal collaboration with a number of events contemporary art in our country. This collection was primarily intended as a to solve identified problems affecting that have proved their media and broad collection of Serbian contemporary art corporate art collection, which should the whole scene (public activities, public attraction, such as the Museum was established in cooperation with exist in the company’s premises, but lobbying, education and knowledge Night or Mixer. However, in recent years the Independent Association Remont, also in the public space.50 However, transfer). this relationship has demonstrated all its with more than 160 purchased works although this collection exists primarily negative consequences, characterized of 55 artists and presents positive in the business area, its relevance in However, when the funds are running by decreasing financial support, and example of support for contemporary public discourse was confirmed by out, and official cultural and political increasing space given to service the art production and art market in a series of exhibitions in 2009 (Novi concept is experiencing noticeable interests of sponsors on the actual Serbia. The collection includes Sad, Subotica, Niš, Vršac, Čačak,

49Dragićević Šešić, M., Stojković, B. (2003) Kultura – menadžment, animacija, marketing, Beograd: Clio 50The company’s management handed over the selection of works of art to the team of experts, consisting of: Saša Janjić, curator of collection, Ana Krstić, art historian, manager of external communications of Telenor and manager of Telenor Foundation, and Marija Simeunović, architect and manager of General Affairs in Telenor

87 7. Participation and audience development in the field of visual art and art market

Zaječar) where parts of this collection During the last decade of the 20th “(Marijana Milankov and Predrag cultural expenditure per household should were presented to the public in Serbia, century, high inflation and dramatically Cvetičanin, 2011), data indicates that be noted,as two times higher than the as well as on the basis of regularly decreasing living standards have about 60% of the population does not average cultural expenditure in Serbia.54 updated catalogs and website. influenced the market in culture in Serbia, attend during the year cultural event, Although pioneering work in this area, i.e. the reduction of the public, as well rarely buys books or other products These results reflect the distribution collection of Serbian contemporary art as the purchasing power of citizens, of cultural industries, but passively of economic power of citizens of of Telenor Foundation presents serious, with a sharp decline in the number of consumes cultural products by looking Serbia, as well as trends that led systematic and methodical investment consumers of cultural goods. Only during television program, reading newspapers to the impoverishment and gradual in culture and art, model how public the last ten years, about 10.6% of the etc. Special problem presents low disappearance of the middle class in corporate collections should look like, population is found below the poverty line purchasing power of citizens of Serbia, Serbia, which was the driving force of the setting professional standards for and about 20% on the line. The strength and results indicate that two-thirds of art market in Serbia during the last two other companies to invest in domestic and size of the audience, their needs and Serbian citizens (67%) per month can decades of the 20th century. arts with plan and relevant concept.51 participation in cultural life only twenty allocate up to 20 euros to meet their years ago, at the end of 1980s, are best cultural needs, a quarter can afford to As for the visit, the last available survey illustrated by the fact that the individual spend on cultural activities up to 50 euros data on participation in culture and habits costs of cultural goods and services was per month, and only 7% of the population of the citizens of Serbia, shows that more accounted for 80% of the total cost of more than that. than half of citizens (63%) in the past year culture.52 Only few years later, in 1994, never visited a gallery or a museum, and due to the high inflation (100% per day), The average household in 2010 could that in the period since 2006 by 2008 the prices of works of art, film or theater allocate 78 euros per year on cultural Belgrade absorbed two thirds of visual tickets became insignificant, both for and recreational expenses (Mikić, 2012.), arts audience.55 users and institutions. Although during and in recent years these costs have the first half of the first decade of the been reduced to 4% of total household Still, the percentage of active visual arts 21st century there were indications of expenditures. There is also a large audience is around 33%, which is at the cultural market recovery, data from disproportion between rural and urban the same level of theater, cinema and 2010 provides an insight into new trends areas, with 5.5% or 9 euros per month per rock concerts active audience. Studies regarding audience participation. household in urban areas, versus 3.3% or have expectedly shown that in this area 3.5 euros per month per member of the cultural needs correlate with socio- Based on the research project “Cultural rural households,53 caused by the poverty demographic co-ordinates, and thus practices of the citizens of Serbia in rural areas. Position of Belgrade’s about 48% of females visit programs

51See more: Krstić, A. and Panić, K. (2012), Telenor: podrška kreativnosti, Kreativna Srbija, Beograd, “Anonymous said: “ 52Compendium of Cultural Policies and Trends in Europe, http://www.culturalpolicies.net/web/serbia.php?aid=821 53Data for 2010. The analysis of cultural trends of household expenditure is based on the data of household expenses by Statistical Office of the Republic, Serbia (2003-2010) http://webrzs.stat.gov.rs/WebSite/ 54Cvetičanin, P., Milankov, M. (2011 )Kulturne prakse građana Srbije, Beograd: Zavod za proučavanje kulturnog razvitka 55Cvetičanin,P., Milankov M. (2011) Kulturne prakse građana Srbije, Beograd: Zavod za proučavanje kulturnog razvitka

88 in galleries and museums, compared to visitors, 320.000 in 2007 and 450.000 the importance of visual culture for the 33% of men, while 57% of people with in 2010, we can conclude that the development of society must be a priority higher education regularly go to galleries, issue of audience development requires for all levels of government and advocated as opposed to 30% of people with complex set of strategically planned and by all stakeholders. secondary and 8% with primary school coordinated activities, with an emphasis education on educational media access.

Also interesting statistic data related to Thus, analyzing activities of visual arts the visual material in households indicates institutions, art galleries and exhibition that less than half of the households spaces of cultural centers in Serbia, we (44.6%) reported to have paintings and can identify signs of poor cooperation about 17% artistic photographs. and lack of contact with the audience, linked to the fatal connection with the If we compare this data with strongly elitist attitude of the participants in the profiled one-day events like the Night contemporary visual art scene, and their of Museums, which already for the first lack of interest for visitors and audience time in 2005 brought together 70.000 development. Culture and, in this case,

Table 5: Cultural consumption in Serbia, 2005-2010. (in euros) Table 6: Participation in culture in Serbia, 2005-2010.

N/A N/A N/A

N/A

Source: Household Budget, Report of the Statistical Office, no. 345, 259 and 161, Rikalović, G. Mikic, H. (2012) Source: Compendium of Cultural Policies and Trends in Europe, http://www.culturalpolicies.net/web/serbia. Cultural Development Plan of Užice 2012-2017, the City of Užice php?aid=821

89 8. General trends and financing system in the field of visual arts

Graph 1: Visit to galleries/museums in the past 12 months prior to survey The time of transformation and reformation total operating costs to institutions like the of the financing mechanisms in culture, Museum of Contemporary Art of Vojvodina, no visitations 63% including contemporary visual art Museum of Vojvodina, Memorial collection 1 to 3 times 23% production, came in the period after of Pavle Beljanski. 2001. The system of funds was abolished 4 to 6 times 8% and budget funding system re-enacted. New concept of the budget system was Omnibus Law from 2002 determined introduced, reporting method and control of 7 to 12 times 2% jurisdiction of AP Vojvodina in the field public revenues and expenditure, new Law on more than 12 times 2% of major provincial cultural institutions, public revenues and expenditure was voted, including leading institutions in the field and new Law on local self-government. no information 2% of contemporary visual art, with the fact Within the local governments, authority that Republic of Serbia is still obliged to and autonomy in managing and developing Source: Cvetičanin, P., Milankov, M. (2011), Kulturne prakse građana Srbije, Zavod za proučavanje kulturnog razvitka, Beograd. provide funds amounting to one third of the local cultural sector was extended,

Table 8: Total number of visitors 2007 - 2009. Graph 2: Visits to museums and galleries per regions

W

Source: Cultural policies at the district level of Serbia, Institute for the Study of Cultural Development, 2012., Belgrade 2011. The survey includes only galleries founded by local governments, Cultural policies at the district level of Serbia, Source: Cvetičanin, P., Milankov M. (2011) Kulturne prakse građana Srbije, Zavod za proučavanje kulturnog Institute for the Study of Cultural Development, 2012. razvitka, Beograd.

90 and for new government departments was industries and cultural relations (arm’s length extremely high pressure on the state budget, members are professional experts in these provided innovative funding system, with principle), which covers contemporary visual and without apparent awareness of the fields, and the highest decision-making greater participation of municipalities in the art and multimedia. Right to participate in necessity to introduce efficient evaluation process is based on expert opinion outside income distribution of public revenues and these Open Calls have organizations and system for these cultural institutions, and the Ministry of Culture. The transparency expenditures autonomy in determination of cultural institutions, civic associations, to reform the current financing system of of the competition is reflected in the public the amount of local nontaxable revenues.56 informal groups and individuals from culture, which must make changes in the disclosure of the results on the website of the Republic of Serbia, while projects / framework of the so-called state institutions. the Ministry, which is not the case with the In addition to the state funding of cultural programs of cultural institutions that are relevant sectors in all local governments. institutions dedicated to contemporary “indirect budget users” can not participate Annual competition for contemporary visual art, at the national level since 2003 in the contest. The work of these institutions art set clear criteria, application and was introduced annual public Open Call of is financed from other budget positions, in decision-making procedures, in line with the Sector for contemporary art, cultural their entirety. “Indirect budget users” make the international practices. Committee

Graphic 4: The number of supported projects in the field of visual arts and multimedia, Ministry of Culture, Media and Information society of the Republic of Serbia, 2005-2012 (in euros)

Graphic 3:The average annual funding of the Ministry of Culture, Media and Information Society for programs of visual arts and multimedia, 2005-2012 (in euros)

2005 148,89%

2006 294,875%

2007 357,773%

2008 367,387%

2009 151,006%

2003 - 2008. 2003 - 2008. 2003 - 2008. 115,459% 2010 Individuals and informal Associations of citizens, Institutions established by the goups private initiative municipality, city or republics* Source: Ministry of Culture, Media and Information Society of the Republic of Serbia, 2011; presented funds do Source: Tadić, D. (2009) Savremene vizuelne umetnosti i multimedije, Beograd; Ministarstvo kulture, informisanja i not include funds aimed at financing events of significance to the City in the field of visual art that are realized from informacionog društva Republike Srbije, 2009-2012. two-part agreements (protocols) between the Ministry of Culture, Media and Information Society of the Republic of *institutions funded by state authorities at the level of the Republic, except for the Ministry of Culture, Information Serbia and City of Belgrade, Secretariat for Culture. and Information Society of the Republic of Serbia.

56Mikić, H. (2011) Kulturna politika i savremeni izazovi finansiranja kulture: Međunarodna iskustva i Srbija, Kultura 130, Beograd, p.91

91 The introduction of the Open Call has if we follow average amounts for all areas with 246.205, theater with 246.635 and distributed on a large number of projects, great importance, first because of the of contemporary art production, we can music with 221.121 euros and in 2012 for carry more symbolic value and importance introduction of a systematic procedure, conclude that funds for contemporary visual visual arts was allocated 489.207 euros, of quality verification of projects by the international standards in the preparation arts are in the range of funds for theaters 397.227 for theater and 312.782 euros for highest official institution, and not so much of project documentation, review of current or music (e.g. in 2008 for projects in the music.57 However, following available data, as a strong financial instrument. production systems, transparency and field of visual arts was allocated 397.411 number of supported projects / programs objectivity of the decision making process euros, for theatre 336.000 and 416.000 and the amounts, it can be seen that for a If we follow the trends of projects’ support and announcement of the results. However, for music; in 2010 visual arts were awarded major part those are unified amounts, which for the past several years58 we can see the symbolic character of this support, as clear signal of future trends of the

Table 10: Financing of visual arts in Serbia 2005 - 2011 (in 000 euros) Ministry of Culture in financing projects of contemporary visual production, which will be based on the role of the Ministry of Culture as the highest state institution that provides opinion on the annual production as a token for broader support. There are clear indications that the Ministry will systematize projects in the field of contemporary visual art and verify them at the annual level.

We should also draw attention to the practice per capita of art works acquisitions, from retrospective, individual or group exhibitions, at the initiative of the heirs of deceased authors, and following the requirements of Museums and Faculties of Fine and Applied Arts, which the Secretariat of Culture of the City initiated in 2003. Until the 1990s, there was Source: Mikić, H. (2012) Od kulture do kreativne ekonomije: tendencije u finansiranju kulture i položaj bibliotečke a state and city committee gathering artists delatnosti, Čitalište, no 20, pp. 18-32. and art historians, acquiring works of art

57Amounts were calculated in relation to the exchange rate at the time of the Open Call Results Announcements, and thus it should be noted that due to the unstable RSD exchange rate, assets in euros were drastically changed and reduced during the year, when the projects were implemented. 58After a period of continuous growth since 2006, there has been a sharp decline in the average annual support for the projects since 2008 to 2009. (from € 6,875 to € 2,081), while in 2010 it was even with an average grant awarded by the Secretariat of Culture of the City of Belgrade. The tendency of a uniform average grant per project, which over the last few years moves in the amount of approximately EUR 2,000 (€ 1,899 per project, with a total amount of 364 320 EUR, assigned to the 183 project in 2010.). 92 that accompanied large retrospectives, but specific fields of modern productions, which of the Hellenic Foundation for Culture), arena, strengthening democratization also considerable solo and group exhibitions often resulted in the design of projects and with occasional research projects or processes and social integration of the and also showed concern for the artists and scene overall only in accordance with the implementing cooperative projects. Only Serbian society. Thus, non-governmental state and city institutions. After this period, provisions given by Foundations. the Swiss Cultural Programme established organizations that hold the spirit of creativity curators have begun to choose artworks at an independent development program to and freedom during the 1990s and first their own discretion. However, since 2003 Among the most active foundations in this support contemporary arts in Serbia in decade of the 21st century continue city acquisition system was reinstalled, with period we can recognize Erste Foundation, accordance with recognized needs (support to be on the scene not only for their art about 300 to 400 artists, and purchasing European Cultural Foundation, Swiss for the new cultural model, alternative experiments and research projects, but also up to one hundred works.59 Today at the Cultural Programme in the Western Balkans, cultural spaces and initiatives, innovative, as platforms providing space for meetings national level art works acquisition system Open Society, Belgrade, and increasing multidisciplinary projects, regional and programs’ exchange, as information does not exist any more. presence of specialized grants of the Open cooperation and networking, professional resource centers for many, especially Society Institute Budapest or Rockefeller education and mobility of young artists, new areas of arts, capacity building and A significant portion of the funds in the Brothers, referring to sustainable as priorities of contextual analysis) co- production of knowledge, regardless of the field of contemporary visual practice, development and infrastructure, Robert financing small art actions and large regional fact that at some point have received awards in accordance with the character of the Bosch Foundation in the field of cultural development projects. and became more integrated into the official experimental and innovative works, is management, etc. We should take into cultural policy. International foundations provided through local and international consideration financial support and Reading the lists of supported organizations, supported their existence and stability too, foundations. Already during the last decade cooperation with foreign embassies in it is clear that among them the largest number allowing them independence and reducing of the 20th century a number of artists, Serbia as well (the Netherlands, USA, present independent organizations that act impact that civil sector suffered during organizations and associations dedicated Finland, Great Britain ...). simultaneously as platforms for innovative every change of government, especially now to contemporary visual art were turning art production and activism programs in local during the global economic crisis towards foreign foundations, in accordance Since 2000, foreign cultural centers communities. The analysis of grants confirms with the dominant activist and socially were also very active in the presentation that equal attention was given to innovative New financing opportunities should engaged nature of their works. This trend of contemporary visual arts, primarily art production, research and educational encompass also the Culture Programme continued during the first decade of the presenting artists from respectful countries programs, cooperation and collaboration, 2007-2013. With the signing of the 21st century, however conditioning the and mediating first contacts with artists and presentation of art and ideas, i.e. critical Memorandum of Understanding in 2008 prevailing tone of contemporary production and scientists from their countries (British public debate in the culture.60 Republic of Serbia has confirmed its in accordance with commitments of Council, French Institute of Serbia, former readiness to accept the provision of 50% Foundations (to promote European values, French Cultural Centre, Goethe Institute, At even larger scale, these projects have of the total amount of contributions to regional cooperation, quality of partnership) Institute Cervantes, Austrian Cultural contributed to the inclusion of civil initiatives the national budget, officially joining the and therefore defining and emphasizing Forum, Italian Cultural Institute, Center in culture in a much broader socio-political Serbian Culture 2007-2013 program,

59Commission in 2003 selected for purchase 32 artworks by 31 authors in the total amount of 30 000 euros, 67 art works by 60 authors in 2004, in the total value of 100 000 euros, 67 art works by 64 authors in 2005, in the total value of 110.000 euros, in 2006 in two purchasing circles proposed and selected 94 works of art by 75 artists and the total value of 120.000 euros, 83 works of art by 55 art- ists in 2007, in the total value of 152.000 euros and in the first half of 2008, 24 art works by 12 artists and the total value of 37.000 euros. Due to lack of funds, the purchase has not been implemented in 2009, but was continued in 2010, without Open Competition, but at the request of museums and cultural institutions, that is election commission, in relation to the reduced budget of 50.000 euros. 60Dragićević-Šešić, M. (2009), Deset godina Švajcarskog programa za kulturu, Beograd: “Anonymous said:”, pp. 17-30 93 where the participation of 50% is provided Since 2005 Niš Art Foundation, in by the Pre-accession funds (IPA). European cooperation with Philip Morris organizes Commission of the Directorate General for competitions for young artists up to 35 Education and Culture officially assigned years old in various artistic disciplines. the annual amount of contributions of 107.000 euros for Serbia’s participation However, examples of the business sector in this program. Each year the Program support are mostly sporadic, without a clear organizes competition for the funds concept and criteria, and this participation intended for projects related to fine arts, of the private business sector is one of the and so far few organizations in the field of great opportunities for further development contemporary visual productions received of a sustainable financing system of modern funding under this program, for partnership visual production in Serbia. projects (Remont, kuda.org, Multikultivator, Belef).61 Nevertheless, financing of contemporary visual creativity is a public need and When it comes to financial support and public responsibility, and initiative to work private sector participation in contemporary on creating a new financing concept of visual production in our country, we can culture should come from the actors of say that there is a need for improvement in the cultural scene themselves, from public this area, with projects based on the good institutions and ministries. In order to principles of partnership between the cultural start successful process of conceiving and economic sectors. Certainly, there are new models of financing culture it is few examples of good practice such as necessary to establish effective networks “Centrifuga” program that Erste Bank and and coordination between the Ministry of the Balkan Community Initiatives Fund (BFIC) Culture and the Ministry of Economy and launched in 2007, aimed to activate young Regional Development, with different levels people (aged 15 to 30 years) in the promotion of local government, media, foundations / initiation of cultural activities in selected local and representatives of the European Union communities (all communities in which Erste accession and integration funds. Bank has branch offices, except in larger centers - Niš, Belgrade and Novi Sad).

61In addition, the Cultural Contact Point, located within the Ministry of Culture, as a mediator for the Culture Programme 2007-2013, assumed the role of the organizer of seminars with the aim to profes- sionally train representatives of institutions for applications at foreign funds.

94 9. Developmental implications of the current cultural situation in the field of art market

This analysis has been developed museums and private initiatives, in relation to the primary actors foundations) and civil society (NGOs, of the art market system: artists, artists’ groups, associations, etc.). institutional requirements, museums, galleries, educational system, agents, art dealers, auction houses, critics, media and audience, consumers and to the public sector (museums, education, associations, the legislative framework), private sector (galleries,

95 10. Concluding observations and recommendations regarding the development of art market REFERENCES:

Although the official level only and resolvement of the issues of the capacity of the professional market 1.Zakon o delatnostima od opšteg nominally emphasizes the necessity most important institutions of visual and gallery system; Development of interesa u oblasti kulture, (Službeni of the economic sustainability of the culture in Serbia, which will result in public-private partnerships and New glasnik RS, br. 49/92) cultural sector, facts presented in the the affirmative social perception of economics of cultural policy, referring 2.Zakon o kulturi (Službeni glasnik RS, previous chapters show that there are visual arts in general; Education and to the contemporary art production. 72/09) no systematic efforts leading towards the professionalization of all relevant Functional parts of the art market would 3.Zakon o budžetskom sistemu (Službeni the introduction of economical models actors (compliance and quality of create the necessary criteria for the art glasnik RS, br. 54/09, 73/10) in the art system in order to create educational profiles with the staffing market, although it is known that the 4.Zakon o utvrđivanju nadležnosti AP a coherent system that will balance needs of society and the projection most delicate issue is to determine the Vojvodine (Službeni glasnik RS, br. private and public initiatives, enable of future economic development, basic criteria of the market - the price 99/09) cooperation between sectors and set introduction of expert studies and of the art. 5.Zakon o porezu na dohodak građana up links between traditional economical promotion of professional profiles that (Službeni glasnik RS, br. 24/01, 80/02 i institutional systems and innovative are important for the development of 135/04), cultural models. the art market); Fight for the audience – 6.Zakon o lokalnoj samoupravi (Službeni Described situation points to the to create a broad base of audience with glasnik RS, br. 129/07) unsustainability of the current inter-sectoral cooperation - with the 7.Zakon o finansiranju lokalne system, volatility and short-term educational sector, tourism, economy samouprave (Službeni glasnik RS, br. effect of random initiatives from the etc; Key role of the media and critics - 62/06) private sector, symbolic role of public structural changes in the media, return 8.Zakon o radu, (Službeni glasnik RS, br. funding and lack of any thought on of newsrooms dedicated to culture, 24/05 i 61/05) entrepreneurial activity. This brings into with many journalists and active critics 9.Zakon o udruženjima (Službeni glasnik question the survival and functioning of and diversification of media news and RS, br. 51/2009) the visual arts in general. texts intended for all segments of the 10.Pravilnik o ulaganjima u oblasti audience; Changes of the tax incentive kulture koja se priznaju kao rashod Experience from the current art market system that will affect investment in (Službeni glasnik RS, br. 9/2002) in Serbia indicates the problems, but the visual arts and purchase of works of 11.Zakona o utvrđivanju određenih also the potentials of this system. art (reduced taxes on the purchases of nadležnosti Autonomne pokrajine Creation of a supportive and affirmative works of art, which would partially affect Vojvodine (Službeni glasnik RS, br. 6/02). environment for the art market and the regulation of the consequences 12.Mulen, R. (2001) Umjetnost i tržište, system of visual arts in general of the current state of the art market Beograd: Clio includes: Opening of the museums, of the grey zone); Strengthening the

96 WEBOGRAPHY

13.Graskamp, V. (2003) Umetnost i 23.Dragićević Šešić, M. (2009) Deset -Deklaracija nezavisne kulturne stvaralaštva Ministarstva kulture RS novac, Beograd: Clio godina delovanja Švajcarskog programa scene – http://www.seecult.org/ –www.kultura.gov.rs/?jez=sc&p=57 14.Šola, T. (2002) Marketing u muzejima, za kulturu u Srbiji, Beograd: Anonymous files/DEKLARACIJA_NEZAVISNE_ (access 10.05.2012) ili o vrlini i kako je obznaniti, Beograd: Clio said: KULTURNE_SCENE_SRBIJE_0.pdf -Rezultati godišnjih konkursa 15.Kolber, F. (2003), Marketing u kulturi i 24.Denegri, J., Šuica, N., Monografija (access 15.05.2012) Pokrajinskog sekretarijata za kulturu umetnosti, Beograd: Clio “Kolekcija Trajković”, Beograd: Fondacija -Policies for culture – – http://www.kultura.vojvodina.gov.rs/ 16.Dragićević Šešić, M., Stojković, B. “Kolekcija Trajković” www.policiesforculture.net (access 15.05.2012) (2007) Kultura – menadžment, animacija, 25.Trajković, S., Trajković, D. (2012) (access 5.05.2012) -Grad Beograd, Sekretarijat za kulturu marketing, Beograd: Clio Kolekcija Trajković: Lična svita, Muzej -Financing the Arts and the Culture in –http://www.beograd.rs/cms/view. 17.Mikić, H, (2011) Kulturna politika i istorije Jugoslavije, Beograd: Fondacija the EU – http://www.culturalpolicies. php?id=1996 (access 10.05.2012) savremeni izazovi finansiranja kulture: “Kolekcija Trajković” net/web/files/134/en/Financing_the_ Međunarodna iskustva i Srbija, časopis 26.Mihaljinac, N. (2012) Osnovni pojmovi Arts_and_Culture_in_the_EU.pdf (access “Kultura”, br. 130, Beograd galerijskog menadžmenta, Beograd: 5.05.2012) 18.Tadić, D. (2009) Savremene vizuelne Topy -Kulturne politike gradova Srbije – umetnosti i multimedije, Konkurs 27.Tadić, D., Gruden, M., Mihaljinac, www.zaprokulorg.rs/ArticleDetails. Ministarstva kulture Republike Srbije N. (2012) Galerijski i izložbeni prostori aspx?ID=178 (access 15.05.2012) (2003 – 2008), Beograd: “Anonymous savremene umetnosti u Srbiji, Beograd: -Stalna konferencija gradova i opština said:” “Anonymous said:” – www.skgo.org (access 15.05.2012) 19.Tadić, D, Gruden, M. (2009) Likovne 28.Rikalović, G., Mikić, H. (2012) -Agenda manifestacija Zavod za kolonije u Srbiji, Konkurs Ministarstva Kreativna Srbija, Beograd: “Anonymous proučavanje kulturnog razvitka kulture Republike Srbije (2002 – 2008), said:” –http://www.zaprokul.org.rs/ Beograd: “Anonymous said:” 29.Cvetičanin P., Milankov M.(2011) AgendaManifestacija/Search.aspx 20.Cvetičanin, P (2005) Ispitivanje Kulturne prakse građana Srbije, Beograd: (access 15.05 2012) kapaciteta NVO u južnoj i istočnoj Srbiji, Zavod za proučavanje kulturnog razvitka -Compendium, cultural policies and Niš: OGI 30.Benović, I. (2009) Kolekcionar kao trends in Europe – 21.Cvetičanin, P, Milankov M. (2011) kustos i selektor, Beograd: Arte Media www. culturalpolicies.net/web/srbia. Kulturne prakse građana Srbije, Beograd: php (access 10.06.2012) Zavod za proučavanje kulturnog razvitka 31.Tadić, D. (2012) Civilni sektor i -Propisi i zakoni Ministarstva kulture 22.Đerić, A. (2009) Kreativne industrije Ministarstvo kulture: Nove perspektive u Republike Srbije – www.kultura.gov. i ekonomija znanja, Beograd: Academica oblasti vizuelnih umetnosti, Kragujevac: rs/?jez=sc&p=56 (access 5.05.2012) Akademska grupa NVO Millennium -Rezultati godišnjih konkursa Sektora

97 Ljuban Brković, SFBConsultants, Belgrade Predrag Dikić, SFBConsultants, Belgrade LEGAL REGULATION OF ART GOODS TRADE UDK: 341.9(497)/111 IN THE WESTERN BALKANS

SUMMARY: 1.Introduction

Paper deals with visual art works The issue of artworks trade and of visual art works. In fact, all Western mostly in a narrow circle of the most trade and all relevant components for establishment of the balance between Balkan countries legislation rules restrict important works of historical and cultural constitution of legal actions. Providing an the instruments of cultural and economic circulation of cultural goods, and also importance. Illustrating is the fact that overview of legal provisions regarding the policy, of which first are directed towards differ in the definition of cultural property, during the 1990s identification and visual artworks trade in Western Balkans the protection of cultural works of which entails a different circle of art classification of new movable cultural countries, paper gives recommendations significant cultural, artistic, historical and works which are protected as cultural property occurred sporadically and that can be implemented in the existing cultural value, while the latter are aimed property, and subject to restrictive rules rarely in the entire region of the Western legal framework as an efficient way at stimulation of the market, mobility of of legal and economic transactions. Balkans. to protect author’s rights during the artists and their works, and capitalization trade process. Focus is placed on visual of the art on the market, is the scene of A common feature of legislation system Besides this fact, the Western Balkans artworks trade on a primary market, with numerous debates and controversies. in the Western Balkans countries is characterizes to some extent restricted all specific characteristics that can occur The subject of the artworks trade that cultural property can be any work access to legal and economic trade during the trade. includes both instruments of economical, of visual art that is important for the and mobility of works of art. To prevent legal, political and organizational nature understaning of historical, cultural and the removal of cultural goods from Keywords: cultural goods, turnover, in the modeling of cultural and economic scientific development, regardless of the country where they are protected, property and moral rights, author policy in this area. In this regard, a better when and where they were created. Such lawmakers passed legislation under understanding of the economic and a legislative solution covers very wide which the work can be taken out of the legal transactions of visual art works range of visual arts that can potentially country only with a certificate issued requires clarification of the distinction become a cultural property and fall under by the competent authorities entrusted between cultural goods and works which the regime of limited trade. Will it become with the care of protection of cultural do not belong into that category. A very a work of cultural property depends property (usually National Institutes important fact for the very procedure primarily on the reputation of the artist for the Protection of Cultural Property, of artworks trade listed above is their - author, and on discretional assessment central parent institution for the distinction from the cultural goods. by the authorities whether the work has protection of movable cultural property, Depending directly on the solutions cultural significance for the country, or etc.). In all Western Balkan countries of the national law regulations of the local community. In the past, most of the there are institutions that maintain a Western Balkans countries (in this study Western Balkans countries were faced register of cultural property, issuing we have primarily analyzed experiences with the lack of financial resources for necessary certificates if the work is in Croatia, Serbia, Montenegro and conservation and protection of movable the subject of cultural significance. In Bosnia and Herzegovina) concerning the cultural property and therefore cultural this regard, the procedure for issuing a definition of cultural property is the trade goods of prior importance were declared certificate if the work is protected as

1See more: Law on protection and preservation of cultural goods of the Republic of Croatia (NN 69/99, NN 151/03, NN 157/03, Correction, NN87/09, NN88/10, NN61/11, NN25/12), Law on protection of cultural goods of the Republic of Montenegro (Sl.list Crne Gore no.49/10), Law on cultural goods of the Republic of Serbia (Sl. glasnik RS, no.71/94). 2See more: Law on Copyright and Related Rights of the Republic of Serbia (Sl.glasnik RS, no.104/09, 99/11), Zakon o autorskom pravu i srodnim pravima BiH (Sl.glasnik BiH, br.63-10), Law on Copyright and Related Rights of the Republic of Croatia (NN 167/03, NN 79/07), Law on Copyright and Related Rights of the Republic of Montenegro (Sl. list Crne Gore no.37/11) 98 2.The authors’ rights in the trade of art cultural heritage, is complicated and on Trade of art works considers any element for their qualification to be an creation, expressed in some form, average takes between one and three transfer of ownership over the work of author’s work - the lack of originality, regardless of its artistic, scientific or days. All that needs to be enclosed for art or transfer of property rights from ie. individuality expressed through other value). an application for a certificate is the the author (or a successor of author’s the personality of the author. image of the artwork or the work itself rights) to the new owner. The first All legislation of the Western Balkans if it is of smaller size, in which case the step in determination of elements In the legal system all author’s works, recognizes the right of authorship competent authority puts a stamp on of the transfer process on which the regardless of their scientific or artistic to the creator of artwork from the the reverse side. When an interested request comes forward is to closer value, have equal protection before the moment of the creation. The very person obtains a certificate that the examine the term of the author’s law. All legislative acts in the Western content of author’s right consists work does not belong to the category of work itself. Author’s work presents an Balkans, dealing with the protection of two components: the moral and cultural property, such work may freely original creation of an author, which is of copyrights, have similar definitions material. be transferred across the state borders. an expression of his inner experience of author’s works, which do not differ of the world and the environment that substantially, but only linguistically. Moral component of author’s right is surrounds him, expressed through For example, countries in the region a set of personal and legal warranties various types of forms. With visual define the author’s work as a spiritual to protect the originality and author’s arts, this form is reflected in a tangible creation, expressed in some form, inner (subjective) relation to the work, expression of inner experience, in no regardless of its artistic, scientific and it absorbs into itself the following matter what form it is embodied. Some or other value, the field of literature, rights: theorists point to the copyright law music, film, architecture, industrial • Author’s right to publish its own disadvantages governing this area, design, theater, applied and fine arts. work, to determine the manner noting that definitions given in these Fine arts include paintings, drawings, in which it will be published, laws do not follow the development sketches, prints, sculptures, etc., and as well as its exclusive right to of arts and do not cover all forms of it can be observed that regulation is information and description of its artistic expression. Here we stress the mainly concentrated on clarification own work; aleatory works of art (works in whose of artistic works that belong to • To be recognized as the author of creation coincidence plays a decisive classical art disciplines. At this point the work and that his/her name or role) and works of the reductionist it is important to note that legal pseudonym is indicated on each and minimalist art (works in which protection is provided for works that copy of the work; the focus is on the spiritual content are uncompleted, in situation that • To protect the integrity of its own and not on its material expression), they meet the conditions required for work, ie. to resist any change of challenging the lack of the essential completed author’s work (a spiritual its own work or its communication

3See more: Law on Copyright and Related Rights of the Republic of Montenegro (Sl.list Crne Gore no.37/11)

99 2.1.Legal protection in case of infringement of rights

to the public in an altered form; of 60 days, with the provision of With high technological development, mass determined on the basis of general rules • To oppose the exploitation security); communications and wide range of resources on damages) of its own work in a way that • to prohibit the public display of for reproduction, violation of authors’ could harm his/her honor and artworks (works of visual art such property and moral rights often happens. For The most common complaints regarding reputation (right of withdrawal). as paintings, photographs and example, it is not uncommon that artworks the protection of the rights are demands sculptures). In this regard, at this are being reproduced without the consent for further infringement in the future, as Property component includes a point it is important to note that of the copyright owner, published without well as for damages for unauthorized use series of copyright laws by which the the author has to prohibit it to the authorization and change their physical of copyrighted works. Here the emphasis is author as a creator is entitled to the the acquirer of the work during integrity also without the permission. placed on the practice of unauthorized use of economic exploitation of the same the alienation, specifically in Laws of the Western Balkans prescribe a copyrighted works for commercial purposes work in order to acquire material gain, written form, and the fact that wide range of protection of author’s rights (copying author’s work on items in the market, and it absorbs into itself the following some countries explicitly stipulate and other holders of rights (the acquirer of or making copies for resale). However, rights: that work must be unpublished property rights). All rights under the law can most lawsuits filed in connection with the • economic right of author to exploit (Croatia) , while others allow that be protected through the court in several preparation of deeds are not directly related its own work; right to the author, regardless directions, depending on the injured rights to the protection of copyright, but concerning • to copy (reproduce) the work, and whether the work is published or and the discretion of the holder. The holder the exercise of rights for payment of fees allow it to second party; not (Serbian) of the injured rights may take an action to for production of the artwork. Namely, due • to put its own work on the market require the following: to underdeveloped awareness of the wide or to lease it; range of rights granted to the author under • to publicly present its own • Determination of rights violation by the the copyright law and poor financial situation, work, including the possibility court the authors choose to exercise their rights of prohibition and to give the • Order to stop the infringement of the through the courts usually only when they do permission for public presentation righst in the future by the court not get (fully or to a lesser extent) a fee based to the second party; • Order by the court to destroy the objects on the commission. • right of the author to approach by which infringement of the law has its own work, if necessary for occured and to destroy the tools with At this point it is important to note that the reproduction of the work (in which violation has occured legislation of all Western Balkan countries Montenegro this right extends • Verdict should be announced at the authorizes the victim to seek up to three to the ability for a request to the expense of the defendant times higher compensation than he/she owner of the artwork in order to • Compensation of the property damage would receive for the actual use of the exhibit it in a continuous period done (property damage amount is protected subject in case that violator of

4See more: Law on Copyright and Related Rights of the Republic of Croatia (NN 167/03, NN 79/07) 5See more: Law on Copyright and Related Rights of the Republic of Serbia (Sl.glasnik RS, no.104/09, 99/11) 6Without such legal solution the plaintiff would have to prove the amount of damages in court proceedings, which, given the specific case, could be very difficult from a practical point of view.

100 2.2.Droit de suite in comparative legal regulation property rights has done it intentionally or Droit de suite presents an Institute in made by the author and with his or hers practical application in the event that by gross negligence. The exception to the all jurisdictions in the Western Balkans. consent. All such reproductions shall be the author does not receive the required above mentioned amount of compensation Droit de suite, as part of the material numbered and labeled, i.e. signed by the information. Namely, in that case the is provided in the Law on Copyright and components of copyright has the author. author could claim the damages against Related Rights of Republic of Croatia, which exclusive use with fine arts and refers a person that denied him or her the provides reimbursement of up to two times to the distribution of the original works In all jurisdictions in the Western necessary information. of the usual fee. This solution allows injured of fine arts and their reproduction. Balkans succession law is applied with parties to seek compensation regardless of This Institute allows the author to work no restrictions to any future disposition Unlike other comparable jurisdictions, whether it occurred, and with no proof of its under certain conditions and to charges of a fine arts work after the disposal by Serbian legislation contains very practical height Also, we add here that the plaintiff in the future a fee for each sale of its the author, except in Croatia, where is provision binding the seller, buyer and may prove actual damages and demand own original work and its reproduction. provided that the author is not entitled agent in the sale of artwork to inform full compensation, if considers that such Namely, if a work of art is at the disposal to benefits under the droit de suite if the the author about the sale within thirty damage exceeds the amount determined in of the author, he shall be entitled to a seller is an art gallery that has acquired days from the sale, as well as an explicit court. fee (a certain percentage) for any future the work of art directly from the author provision stating that the compensation disposal on a part of the owners who less than three years prior to its resale, fee is due by the right of succession As for the deadlines for filing a claim regarding have acquired the ownership of a specific and if the price at which it resells the within thirty days of the sale. This legal the copyright law we should make a distinction piece of the fine arts. This author’s right work does not exceed the equivalent of decision has practical application in the between suits seeking the termination of the includes the right to claim compensation 10.000,00 Euros. case of dispute when the author does not infringement, the destruction and alteration to the extent provided by law (here have to prove diligence or malpractice of of objects and claims for compensation it comes to certain percentages and The author cannot waive the right of joint debtors in the event of litigation (in of tangible and intangible damages. In the limits set in the legislation of different succession, nor can dispose with it (any terms of demand of interest on amounts above mentioned cases the author can countries of the Western Balkans), and transfer of rights of succession is invalid), due). In practice, this arrangement always claim protection as long as there are his right to be informed of any future sale and after author’s death the right of allows the author to quickly learn about violations of law or infringement cases, while of his work and the new owner of the succession passes to his or hers heirs. the sale of the work and its own right compensation of the damages is associated same. For the payment of remuneration All legislation of the Western Balkans to obtain compensation. Hence with with periods of limitation prescribed by the to the author, by the right of succession, gives the right to the author within three defined payment’s due date by the droit laws governing contractual relations. In jointly are responsible seller, buyer and years, from the resale by the seller, de suite, the author would have the right practice, the greatest difficulty for the author agent in the sale of the artwork (galleries, buyer and intermediary in the process to statutory interest if the fee is not paid is to prove the authorship, and circumstances auction houses and other intermediaries of the sale, to request any information after that date, regardless of whether the that confirm whether the work is original through which the sales went). Droit de that is necessary to secure payment fulfillment of the obligations is sought. In intellectual creation. suite includes reproductions of fine art of compensation. This provision has other jurisdictions where the maturity

7Article 34. Law on Copyright and Related Rights of the Republic of Croatia 8Law on Copyright and Related Rights of the Republic of Serbia, in Article 35, position 9. Sl.glasnik RS no.104/2009 and 99/2011

101 date is not envisaged author would have because with undefined deadline for provide obligation for the seller, buyer and one can be held accountable for it. to call the debtor to fulfill its obligation, and fullfillment of obligation debtors are overdue agent to notify the author about the sale, in At this point, we will display the benefits of from that point by all the general contractual only when the creditor calls to execute the practice it leads to the fact that they can sell the author by the droit de suite in each of the rules would be entitled to default interest, same. Also, as other legislation does not and withhold the information, because no Western Balkans countries:

Republic of Serbia Bosnia and Herzegovina

4% 4%

3% 3% 1% 1% 0,5% 0,5% 0,25% 0,25%

Note: Regardless of the original purchase price, fees for droit de suite should not amount to more than 13,000 Note: Regardless of the original purchase price excluding taxes, fees based on the droit de suite cannot exceed euros (1.3 million RSD). 25.000 KM.

Republic of Croatia Montenegro

5% 4%

3% 3% 1% 1% 0,5% 0,5%

0,25% 0,25%

Note: The total amount that belongs to the author can not be higher than 12,500 euros equivalent in kuna. The Note: The fee is paid as a percentage of the retail price without the tax, if it is at least 1.000 Euros. The total basis for calculation of this amount is the sales price without the tax. amount that belongs to the author cannot be greater than 12.500 Euros

102 2.3.Commissioned artworks

For commissioned artworks by interested while the remaining rights are reserved by the parties is distinctive that the entire process is author. characterized by the autonomy of contracting parties. So, everything can be arranged, It is very important for the author to precisly starting with the type of material, types of define its own obligations during the colors up to materials for the picture frame. negotiations in terms of the quality and With these types of commissions are applied the content. In the event that the above the rules of law governing copyrights and, obligations are not defined, one can expect indirectly, the rules of law governing relations, further problems during the implementation legal obligations, i.e. provisions governing of the work (the contracting authority may the contract of engagement. If nothing else terminate the contract if dissatisfied with it, is agreed upon, the author is responsible to may recover costs, request a price reduction take instructions from the client only when or modification on the burden of the author). it suits the nature of work, i.e. if it does not In the above cases it is difficult to predict the substantially limit the freedom of artistic ultimate completion of this legal dispute, and creativity. Essentially, the parties may agree its economic consequences. So we repeat to such an extent that the client can seriously that it is very important that the author has interfere with the creative work of the author. the legal protection before it enters into the To avoid such possibility recommendation production, as any subsequent dispute over to the authors is that in accordance with the authorship can cause big material cost their capabilities hire professional experts and useless waste of time. (lawyers, mediators or competent), that would lead negotiations on their behalf and for their With the commission of art works it should costs of production, and also to define an of material intended for the costs of works, account, protecting their rights and artistic especially take notice of several key issues, as obligation on the client to purchase materials which can vary of standardized costs integrity. it follows: for work’s production. It has been proved in recognized for the production of certain types practice that integrated contract for author’s of works. Individual contracts for authors’ Legislation of all Western Balkan countries Although it is not uncommon in practice that fee and material costs requires in the funds fee and material cost are very important provides as mandatory written form of the copyright fees are subject to contract transfer appearance of intermediaries because often the author in the case of art agreement on artwork’s commission. If along with material costs, recommendation (agencies, law firms, associations), in order work commission can not take into account nothing else is agreed client has the right for the authors is that in drafting the contracts to avoid payment of increased fiscal duties economic categories (material prices, taxes, to publish the work and put into circulation, include particular fee for work and material to the entire fee that includes the amount price fluctuations, transportation costs

103 3.Artworks trade between the Western Balkans countries of imported materials, etc.), important to licensing of property rights only the licensee In terms of artworks trade, both within the have the relevant institutions for that, much calculate the cost of production and therefore is authorized to exploit the economic rights, Western Balkan countries and the EU single less the categorization of the market value. itself cause a lack of planned earnings. This while on the parties depend whether this right rule applies to the free circulation of these With contemporary artists, the situation solution has the practical value, because can be transferred to another (laws expressly goods. The artwork in all these countries has is simpler if the artwork was sold through apart from the fact that the author would provide that the licensee cannot transfer the the status of the goods and all other material gallery sale, since it is possible to determine know from the start the amount of earnings, right acquired without the consent of the goods. Given the nature of art, there are the market value of the sale and the with this solution he/she transfers the author). In the non-exclusive licensing rights, no restrictions that would limit or prohibit amount of customs duties with the gallery responsibility for material quality to the property acquirer has no right to prohibit sales. In order to transfer and alianate a documentation. For individuals, the duty- client (on the countrary, the author would be the commercial use of copyrighted material work of art abroad, a confirmation should free exemptions (exemption from customs responsible for the quality of materials and to other acquirers, and it is not authorized be obtained, attached to the work of art, by duties) are valid when works of art are in case any of its shortcomings would be to further transfers the rights. It should the state authorities verifying that work of imported as personal belongings, that is if responsible to the client, which could result in be noted that the statutory presumption art does not fall into the category of cultural the author imports its own works in particular high costs for the author). acknowledges non-exclusive licensing property, with accompanying customs country, providing that he or she guarantees rights of property, unless otherwise agreed. documentation. It is recommended that the for the work of arts as its owns (statement As for the transfer of authors’ moral and Assignment of property rights may be limited exportation of goods is organized with an on authorship of the imported works of art). property rights, legislation of the Western by subject, time and space In the case of the authorized forwarding agent, who knows In all other cases, the customs are paid on Balkan countries provides identical solutions. limitation by the subject the licensee shall be the customs regulations and procedures. works of art, if their value exceeds a certain In terms of authors’ moral rights laws authorized to perform one or more specific This is important because the Customs Law value and if preferential or zero rates of contain imperative provisions that expressly acts of exploitation listed in the contract on penalty provisions are very strict, with high tax are not provided. Artworks import into prohibit the author to transfer them (with the the transfer of rights. In the event that the financial penalties for incorrectly prepared Serbia is subject to customs clearance and exception of the author’s death in which case contract has space restrictions the licensee export. For imports of works of art one of provided when single value exceeds € 100. it is transferred to heirs), and only authorizes may only use its right to the contractual the questions is to determine the value Simplified custom procedure is applied author and author’s heirs (after his or her death) territory, which is generally narrower than the of the artwork that has changed owners up to 3.000 euros, with the customs rate to the same protection in court proceedings. area in which copyright exists. With the time on the market for several times and when of 10% (if imported works are intended With property rights situation is diametrically limitation the licensee is authorized to exploit valid documentations does not exist (e.g. for their own use), and over this value different, as some lawmakers leave the right the copyrighted work in a specific period of contracts of sale and purchase from the customary clearance procedure is applied to the author and its heirs to defer to any third time that is shorter than the duration of the first to the last owner, bills, etc.), since it then that may require the use of primary or party all individual or property rights. Here copyright (property rights and copyright are raises the question of value determination preferential customs rates. When importing it is crucial to make a distinction between valid during the author’s lifetime and 70 years based on which the import duties will be objects of art, antiques and collectibles by exclusive and non-exclusive licensing of after his death, and moral rights last even charged. Then it is necessary to assess the legal entities, the customs rate is 5%, and property rights. In the case of exclusive after the expiration date of property rights). value, and Western Balkans countries do not such imports are not subject to customs

104 REFERENCES: with a free trade agreement, and therefore For artworks temporarily exported from 1.Carinski zakon Republike Srbije (Sl. Files/01%20Sporazum%20CEFTA%20 for the traffic between the Western Balkan the Western Balkan countries for public Glasnik RS no. 18/2010) 2006.pdf (pristup: maj 2012) countries (Croatia, Macedonia, Montenegro display, (international exhibitions, gallery 2.Carinska tarifa Bosne i Hercegovine http:// 12.Zakon o zaštiti i očuvanju kulturnih and Bosnia and Herzegovina) CEFTA presentations, promotions, etc.), but not www.uino.gov.ba/download/Dokumenti/ dobara Republike Hrvatske (NN 69/99, NN agreement applies where the tariff rate is for their sale, the regime of ATA CARNET Dokumenti/bos/Carina/Carinska_tarifa_BiH. 151/03, NN 157/03, Ispravak, NN87/09, 0%. is valid with licenses for temporary export pdf (access: May 2012) NN88/10, NN61/11, NN25/12) in a certain period of time, after which 3.Carinska tarifa Hrvatska http://www. 13.Zakon o zaštiti kulturnih dobara The Customs Tariff of Bosnia and they must be returned to the country from carina.hr/Dokumenti/zakon_o_tarifi.aspx Republike Crne Gore (Sl.list Crne Gore Herzegovina on works of art, collectors’ which they were exported. ATA Carnet is (access: May 2012) no. 49/10) pieces and art objects is normally 5%, an international customs document for 4.Carinska tarifa Srbija http://sas.rs/ 14.Zakon o kulturnim dobrima Republike but for EU member countries and CEFTA temporary export/import of goods, used wp-content/blogs.dir/1/files/2011/02/ Srbije (Sl.glasnik RS, no. 71/94) member countries (Croatia, Macedonia, to simplify customs procedures, valid for ct_2011.pdf (access: May 2012) Montenegro and Serbia) it is 0% and not one year from the time of its release. At the 5.Marković, S. (2000) Pravo intelektualne liable to custom duty. It is not applied in the moment ATA Carnet is recognized by 70 svojine, Beograd: Službeni glasnik case of customs clearance in passenger member states of the system, which include 6.Zakon o autorskom i srodnim pravima WEBOGRAPHY traffic, but only for the import from the all the Western Balkan countries, allowing Republike Srbije (Sl.glasnik RS, no. 104/09, foreign legal entities. In the passenger easier mobility of visual arts between 99/11) transport, for the works of art whose value the countries, especially in terms of their 7.Zakon o autorskom pravu i srodnim exceeds 170 Euros up to 1.200 Euros, international promotion. pravima BiH (Sl.glasnik BiH, no. 63-10) http://portal.unesco.org/en/ev.phpURL_ preferential tariff rate of 0% is applied. For 8.Zakon o autorskom pravu i srodnim ID=13147&URL_DO=DO_TOPIC&URL_ goods whose value exceeds 1.200 Euros pravima Republike Hrvatske (NN 167/03, SECTION=201.html (pristup, maj 2012) (in some cases up to 6.000 Euros) they NN 79/07) http://www.digitalnaagenda.gov.rs/wp- are being cleared at a rate of 10%, if the 9.Zakon o autorskom i srodnim pravima content/uploads/2011/09/protokol-uz- passenger does not require clearance by Republike Crne Gore (Sl.list Crne Gore sporazum-knjige.pdf (pristup, maj 2012) the regular procedure of the Customs Tariff no. 37/11) Carinska uprava Republike Hrvatske, http:// of Bosnia and Herzegovina. In terms of 10.Zakon o carinskoj tarifi, Sl. Glasnik RS, www.carina.hr/Pocetna/index2.aspx works of art traffic, in comparison to other no. 62/05; 61/07; 05/09) Carisnka uprava Republike Srbije, http:// Western Balkan countries, Croatia has the 11.Zakon o potvrđivanju sporazuma o www.upravacarina.rs/cyr/Stranice/Default. most flexible approach, and with the import izmeni i pristupanju sporazumu o slobodnoj aspx of art collectibles and antiques applies 0% trgovini u Centralnoj Evropi-CEFTA Carinska uprava Bosne i Hercegovine, duty rate. 2006, http://www.pks.rs/SADRZAJ/ http://www.uino.gov.ba/b/Carina/

105 Dragan Demirović, PhD Deloitte d.o.o., Beograd TAX POLICY IN THE WESTERN BALKAN COUNTRIES IN THE UDK: 340;346 (497)/111 DEVELOPMENT OF ART MARKETS AND THEIR EU ACCESSION

SUMMARY: 1.Defining the territorial scope and subject of analysis

The paper deals with the fiscal Keywords: work of art, value added The territory of the Western Balkans A, of the European Council Directive policy of selected Western Balkans tax, income tax, corporate income tax, includes countries of various geographic 2006/112/EC on the common system countries (Serbia, Croatia, Bosnia and tax competitiveness. size, population and political status in of value added tax (VAT Directive).1 Herzegovina with both entities) with terms of their relation to the European respect to the art market. The term art Union (EU). Given the proximity in terms The central part of the analysis will market is determined on the basis of of geographical location and size, we present taxation of Value Added Tax for the tax definition of the term work of art decided to tackle the legislation of three art trade in case of persons (individuals contained in regulations governing the countries: Bosnia and Herzegovina and legal entities) that perform their Value Added Tax and it is concluded that (both entities), Croatia and Serbia. We occupation as art dealers. Prior to in this respect all analyzed jurisdictions believe that it will be useful to compare that, we will explain how and to what harmonized their legislation with EU solutions of Croatia, as a country that is extent lawmakers in these countries legislation. However, the author points at the end of the European integration prescribed tax incentives in the field of out that these legislations also share process, with experiences of other two the income tax for persons that buy art weaknesses of EU legislation primarily countries with still a lot of activities for their own use. related to non-flexible definition of the ahead. term work of art that favors traditional forms of art and is not open to changes As for the case studies, it is distinctive in artistic expression. Further, the that we deal only with those works of author analyzes the tax treatment of art suitable to be traded due to the professional art dealers and buyers fact that: (1) their shape is such that that purchase works of art for their their physical delivery can be done personal use and concludes that tax relatively easily and (2) the content of legislation of the analyzed jurisdictions these works of art can be introduced by is not contrary to the EU legislation. direct observation, without application However, it appears that in terms of of any other proceedings or the use tax competitiveness improvement of technical means. As a rule, the analyzed jurisdictions did not use all works of fine arts and certain forms opportunities especially the possibility of photography will be discussed. In to prescribe the reduced rate of value fact, defining the subject of research added tax. we have basically followed the work of art definition stated in Annex IX, Part

1Council Directive 2006/112 of 28 November 2006 on the common system of value added tax, Official Journal of the European Union L 347, 11.12.2006

106 2.Taxing entities for the purchase of art objects for their own use

When individuals and companies buy be considered as income according United States and France; (2) the gains What is the situation in Serbia in works of art with a primary goal to use to the source concept. On the other are not taxed on the basis of activities this respect? Regarding the income them for their personal use, it is obvious hand, the accreation concept, which in that don’t have profit potential and taxation of individuals who have that such activity is not aimed in profit contemporary tax systems has greater expenses which have occurred while acquired works of art from the artist making, but even in these cases, buyers impact then the source concept, performing these activities are not or their legal successors; Serbian law of artworks may alienate from time to defines income as the monetary value deductible for tax purposes - Canada, does not provide their taxation during time some of the purchased works. The of individuals’ economic strength net United Kingdom of Great Britain and their subsequent disposal. In fact, question is how we should treat gains increase in a given period.3 The above Northern Ireland (United Kingdom), competent authorities (Intellectual and losses of these activities that are concept involves practically all income Germany. 5 Property Office and the Ministry of not conducted primarily for profit. including income from casual sales Finance) took a stand that when an of personal property. In Comparative In terms of legal entities that pay individual disposes work of art acquired In theory, it is of the utmost importance law terms, in the case of individuals, corporate income tax, there are a directly from the artist there are no whether this occasional revenue can be we can make distinction between number of different systems of limitation grounds neither for the collection of considered as income. In this respect global, schedular, or, possibly, mixed on expenses that are recognized royalties nor for any taxation of capital there are no unified positions, and system of taxation.4 In the case of the for purposes of taxable income gains7, and that this is the case with basically we can distinguish two basic schedular income tax, for any form determination. As a rule, only those a personal property’s sale and not of approaches. The first approach is of income special rules of taxation expenses occurred with a goal to achieve the copyright transfer. In our opinion, accepted by proponents of the source must be provided, or income will not taxable gain will generally be considered this position is in full accordance with concept. This concept involves several be considered as taxable. Unlike the to be tax deductible. In practice, caused the provisions of the Law on Personal directions, for which is common that schedular system, with global system by the above mentioned limitations, Income Tax8 (LPIT), which expressly the income is determined as the sum of of income taxation, we can distinguish companies that do not gain profit with does not provide special taxation of the net revenue, which at specific time several basic solutions: (1) expenses the use of artworks (for example, on the income from the alienation of personal intervals converges to a person from arising from activities whose primary basis of their exposure with ticket sales) property, except in cases when it is sources guaranteeing a regular influx.2 purpose is not profit-making, can only be or trade with artworks will not be able precribed that on such alieanation It is obvious that periodic incomes used to reduce the amount of the income to use the expenditure occurred on the capital gain is obtained.9 from the alienation of artworks used that is earned on the basis of such non- acquisition and use of artistic works for primarily for personal use could not profit activities - solution adopted in the the reduction of the profit tax.6

2Popović D. (1997) Nauka o porezima i poresko pravo, Beograd, COLPI, Savremena administracija, pp. 501-502. 3IIbid, p. 502. 4Pure global model of income taxation is based on the assumption that all gross receipts of the taxpayer and all costs (necessary to achieve revenue) are taken together: so we come to synthetic net income that is subject to income tax. On the other hand, pure schedular tax model is based on the fact assumption that the gross revenue and costs are determined separately for each type of income. In practice there are many variations between these two pure models. See in detail: Popović D. (2008) Tax Law, Belgrade, University of Belgrade, Faculty of Law, pp. 259-262. 5See: Ault H. et all (2004) Compartive Income Taxation, Hag, Kluwer Law International, pp. 218-221. 6For detailed comparative legal review, see: Rohatgi R. (2002) Basic International Taxation, Hag, Kluwer Law International, pp. 174-177.

107 In the case of legal entities, it is clear on Value Added Tax in Croatia 13 and that is not taxed for their next sale. activities being carried out are not that the costs incurred for the purchase Bosnia and Herzegovina14 do not In Bosnia and Herzegovina personal recognized as expenses. 21 Thus, in of works of arts are not recognized prescribe such a limitation, but in both income tax and corporate income tax regards to Republic of Srpska there as expenses for tax purposes with cases as a condition for the use of the are subject to different regulations on is no doubt that the costs incurred respect to a provision that prohibits input tax is provided that the taxpayer the entity level (Federation of Bosnia in connection with the purchase of the use of expenses which are not has received delivery with a purpose of and Herzegovina18 and Republic of works of art are not recognized as an incurred for business purposes in the performing deliveries taxed with VAT. Srpska19). As for the personal income expense for corporate tax purposes tax return. 10 In addition, the same Law 15 The above condition has practically tax, there is an identical provision in if the taxpayer’s activity is not related expressly founds that works of fine and the same effect as the limitation in the each entity which does not tax the to the art trade. On the other hand, applied arts and decorative items for Serbian Law. income from the sales of the property Federation of Bosnia and Herzegovina interior spaces are not considered as used for personal use.20 We believe does not prescribe such explicit capital assets for use of tax credit for Regarding the taxation of individuals, that this provision may apply to the provision, and accordingly costs, investments in their purchase.11 Thus, in the Croatian Law on Income Tax disposal of works of art that individuals incurred in connection with acquired the Serbian Tax Law we can not expect 16 (CLIT) expressly provides that have acquired from other persons, artworks, could be recognized as an any tax benefits for the purchase of income tax is not payable if income regardless of whether such persons are expense for tax purposes only if they works of art. Further, the Value Added is realized on disposal of items that the authors, heirs or persons who have meet requirements to be recognized as Tax which the taxpayer has paid for the are personal property.17 This means acquired the works of art on another an expense under accounting rules and purchase of fine and applied arts, and that the tax treatment of sales of art legal basis. On the other hand, in terms international accounting standards. other decorative items that are used works that were acquired from the of corporate income taxation, Republic Given that works of art, as a rule, have for office space can not be used as authors and their legal successors of Srpska specifically provides that an unlimited duration in accordance input tax and can not reduce the total in Croatia is not different from the personal costs and costs that did with international accounting standards value added tax liability.12 Legislation already described solutions in Serbia, not incurred in connection with the (IAS 16) depreciation is not calculated

7According to the opinion of the Intellectual Property Office (N° 15530/07/1 from 20.12.2007): “Legal concept of exhaustion of right limits the right of exclusive authorization for placement of copies of the art work on the market in the case where the copies in the public market change the owners for several times”and then the same opinion specifies:” ... during all subsequent changes of the owner on the same sample/samples, the authorization of the author (successor) to put copies in the market is not working. Due to the legal concept of exhaustion of right , therefore, with all subsequent changes of own- ers, authorization by the author to put copies in circulation does not work, and do not bear any obligation for the seller to obtain authorization for that from the author (and to pay a fee to him), but such obliga- tion exists only with the first placement of art work on the market”. On basis of this argument by the Intellectual Property Office, is given the opinion of the Ministry of Finances (No. 413-00-01555/2007- 04 of 26/12/2007. Year), which states that on the basis of works of art sales acquired by the authors and their legal successor capital gains tax, or transfer tax are not paid. 8„Službeni glasnik RS“ no. 25/01, 80/02, 43/03, 84/04, 18/10, 101/11. 9Capital gains are taxed only for the transfer with a fee for: 1) the actual real estate rights, 2) the permanent right of use and building on urban construction sites, 3) the copyright, rights related to copyright and industrial property rights, 4) share in the assets of legal entities, shares and other securities, other than debt securities of values 5) investment units purchased by the open-ended investment fund, according to the law governing investment funds, 6) investment units of voluntary pension fund; 7) accumulated funds based on scheduled payments from the account of the voluntary pension fund. See: Article 72. ITL. 108 3.Tax definition of artwork on these assets. Accordingly, in the The term of artwork is defined in the three listed legislations in terms for color of one or more plates, regardless Federation of Bosnia nad Herzegovina connection with the implementation which taxpayers are presribed special of the procedure and used material, as well, on the bases of artworks of special VAT schemes. These special VAT schemes. unless mechanical or photomechanical acquisition taxable income can not VAT schemes are provided for certain process was applied; be reduced, if these artworks are not taxpayers. In the Serbian Tax Law In Serbia, the works of art are defined 3. original sculptures and statuary intended for further trade. special VAT schemes are prescribed for: by the Regulations on determination of of any material, if they are executed by small taxpayers, farmers, travel agents, goods that are considered as works of the author, and casts of sculptures, second-hand goods, works of art and art, antiques and collectors’ pieces 25 whose production is limited to eight antiques. Law on VAT in BIH (BLVAT) (Hereinafter: Regulation), as it follows26: copies, if controlled by the author or his regulates in detail special VAT schemes successor; as it follows: small businesses, farmers, 1. paintings, drawings, collages 4. hand-woven tapestries and the services provided by travel agencies and decorative plates, if made by wall textiles based on the original work and tour operators, used goods, works author’s hand, other than plans and of art, provided that are no more than of art, collectors’ pieces and antiques.22 drawings for architectural, engineering, eight copies of each; In Croatia, the special VAT schemes industrial, commercial, topographical 5. unique ceramic objects made are governed by the provisions of the or similar purposes, hand-decorated solely by the author, with his signature; Law on the Value Added Tax23 (CLVAT) manufactured parts, drawings for a 6. images in copper, executed governing the taxation of entrepreneurs theater script, painted fabric in a studio entirely by author’s hand, limited to and margins on sale of used goods, or similar canvases; eight numbered copies signed by the works of art, collectors’ pieces and 2. original engravings, prints and author or the studio; antique goods.24 At first glance, there lithographs, if made by author’s hand in 7. art photographs taken and are no significant differences between limited numbers in black and white or in printed by the author or taken under his

10Article 7a Section 1. Clause 8. Law on profit tax of legal entities („Službeni glasnik Republike Srbije“ no. 25/01, 80/02, 43/03, 84/04, 18/10, 101/11, hereafter: LPTLE) 11Article 48. Section 5. LPTLE 12Article 29. Section 1. Clause 3. Law on value added tax ( „Službeni glasnik RS“ no. 84/04, 61/05, 61/07 – Hereinafter: LVAT) . 13Law on value added tax („Narodne novine“ no. 47/95, 106/96, 164/98, 105/99, 54/00, 73/00, 48/04, 82/04, 90/05, 76/07, 87/09, 94/09, 22/12 – Hereinafter: CLVAT). 14Law on value added tax (Službeni glasnik BiH“ no. 09/05, 35/05, 100/08 – Hereinafter: BLVAT). 15Article 20. HZPDV and Section 32. Clause 1. BLVAT 16„Narodne novine“ no. 177/04, 73/08, 80/10, 114/11, 22/12. 17Article 9. Section 2. Clause 2.4. HZPDG. 18At Bosnia and Herzegovina Federation level are applied: Law on income tax („Službeni glasnik Federacije BiH“ no. 10/08, 9/10, 44/11, dalje u tekstu: BZPDG) and Law on profit tax „Službeni( glasnik Fed- eracije BiH“ no. 97/07, 14/08, 39/09, dalje u tekstu: BLVAT) 19At the level of the Republic of Srpska are applied: Law on income tax („Službeni glasnik Republike Srpske“ no. 91/06, 128/06, 120/08, 71/10, 1/11, Hereinafter: SLLIT) and Law on profit tax („Službeni glasnik Republike Srpske“ no. 91/06, Hereinafter: SLPT) 20Article 5. Section 1. Clause 7. BLIT and Article 7. Section 2. Clause j. SLIT. 21Article 8. Section 3. Clause z. SLPT. 109 care, signed, numbered and limited to photomechanical process (code KN his supervision, signed and numbered that all three analyzed legislations 30 copies in all sizes. 9702 00 00); and limited to 30 copies, in all sizes and are in line with the EU Law. However, 3. original sculptures and frames. it also means that they share the In Bosnia and Herzegovina as artworks statuary, in any material, provided that observed weaknesses of the given are counted: 27 they are entirely made by the artist; In Croatia, in contrast to Serbia and solution which is primarily related to 1. paintings, collages and similar 4. sculpture’s casts, whose Bosnia and Herzegovina, the rules favor traditional forms of art at the decorative plaques, paintings and production is limited to eight copies, governing VAT define the term of expense of contemporary art (for drawings, which are entirely made by if controlled by the author or his legal artwork as indicated by the content example, in relation to various forms author’s hand, mouth or feet, other successor (code KN 9703 00 00) of other regulations and as it follows: of contemporary visual arts works) than plans and drawings, architectural, 5. tapestries (code KN 5805 00 “artwork”signifies objects from the and, accordingly, not flexible enough engineering, industrial, commercial, 00) and textile products which are Customs Tariff, tariff codes 9701, compared to the changes that occur topographical or similar purposes, placed on the wall (code KN 6304 00 9702 00 00, 9703 00 00 5805 00 in forms of artistic expression. Also, as hand-decorated manufactured articles, 00) made by hand from original designs 00, and wall coverings by fabrics of an objection to the decision to accept theater decorations, canvases at the made by artists, provided that no more the Customs Tariff, tariff code 6304 the VAT Directive, some authors state back of the studio or similarly painted than eight copies of each; according the original designs of the that tax authorities are not qualified canvases (code KN 9701); 6. individual pieces of ceramics artist’.28 to assess whether the object is a work 2. original engravings, prints executed entirely by hand and signed of art or not. In this regard significant and lithographs, which represent by the artist; With a more detailed analysis of the involvement of experts in the field of prints produced in limited number of 7. enamel on copper, executed definition of the term “artwork” in all art taxation is needed, both in defining copies directly in black and white or entirely by hand, limited to eight listed countries it can be concluded the term “artwork” and in particular in color from one of the few plates numbered copies bearing the signature that in all of them, regardless of small addressing whether certain items are that are entirely made by author’s of the artist or the studio, excluding differences in wording, the meaning eligible to be considered as a work of hand, mouth or feet regardless on the articles of jewelery and silverware; is more or less translated from the art. In addition, there are proposals to process or technique or used material, 8. photographs taken by the definition in Annex IX, part A. of VAT consider the status of the person who but excluding any mechanical or artist, printed or to be printed under Directive. In this sense, we can say initially created the subject of trade

22Article 44-51. BLVAT. 23„Narodne novine“ no. 47/95, 106/96, 164/98, 105/99, 54/00, 73/00, 48/04, 82/04, 90/05, 76/07, 87/09, 94/09, 22/12. 24Article 22-22h. CLVAT. 25 „Službeni glasnik RS“ no. 105/2004. 26Article 2. of the Regulation. 27Article 47. Section 5. Anex 1(a) BLVAT. 28These headings include: 9701 - paintings, drawings and pastels, executed entirely by hand except of drawing of heading 4906 and crafts painted or decorated by hand; collages and similar decorative panels; 9702 00 00 - Original engravings, lithographs and printed images; 9703 00 00 - Original sculptures and statuary in any material; 5805 00 00 - Handmade types of Gobelins tapestries, Flaunders, Abusson, Beauvais and the like, and needle made tapestries (eg petit point, cross stitch) whether or not manufactured . 110 4.Author’s right and tax definition of artwork

- whether recognized as an artist or Analyzing the items to which special following paragraph quoted provision (BLCRR)36 is defined as: „ … individual not, as well as the status of the person VAT schemes provided for works of defines what is considered especially intellectual creations of literature, who bought the above item - whether it art applies, we will see that it relates as author’s work.32 The author’s work science and art, regardless of type, is registered as an art dealer or not.29 only to the portion of the results of term is determined in a similar manner method and form of expression, unless In other words, application of formal the human activities which meets the in other jurisdictions that we study. otherwise provided by law.”37 Next criteria is proposed that would consider requirements to be considered as In Croatia, term of the author’s work paragraph of the same article specifies as a work of art the one meeting one of author’s work in terms of regulations is defined by the Law on Copyright what is considered especially as work the following alternative conditions: governing copyright and related rights, and Related Rights (CLCRR)33 as: of art. 38 1.work is nitially created by a person and by the rule only on the works of “… original intellectual creation in who has the status of a recognized fine art and photography. Namely, the literary, scientific and artistic Based on the abovementioned, the artist, or in Serbia, the Law on Copyright and domain, which has individual character, conclusion is that the work of art tax 2.artwork trade is performed by a Related Rights30 (LCRR) author’s work regardless of the manner and form of term is far narrower than the copyright person who is registered as an art defines as: “... original intellectual expression, type, value or purpose, term as defined by regulations in the dealer. creation, expressed in a certain form, unless otherwise provided by the law.”34 field of copyright. In this paper, we will regardless of its artistic, scientific or Further, the following paragraph of the pursue the tax treatment only for works other value, its purpose, size, content above noted provision defines the term of art that fulfill the conditions of the and method of expression, as well as author’s work.35 Similarly, in Bosnia tax definition of work of art. the public communication admissibility and Herzegovina author’s work, by the of its contents”.31 Further, in the Law on Copyright and Related Rights

29See in more detail: Hemels S. (2005) Art and European VAT, http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1959979 access 02.05.2012, pp. 5-9. 30„Službeni glasnik RS“ no. 14/2009 i 99/2011. 31Article 2. Section 1. LCRR. 32In particular are listed: 1) written works (books, pamphlets, articles, translations, computer programs in any form of their expression, including the preparatory material for their production, etc.), 2) speech acts (lectures, speeches, sermons, etc. .), 3) drama works, drama-musical, choreographic and pantomime works, and works originating from folklore, 4) musical works with or without words; 5) Films (cinema and television); 6) Fine arts (paintings, drawings, sketches, prints, sculptures, etc..), 7) works of architecture, applied art and industrial design, 8) cartographic works (geographic and topographic maps), 9) maps, sketches, models and photographs, 10) theater direction. 33„Narodne novine“ no. 167/03, 79/07. 34Article 5. Section 1. CLCRR. 35This provision specifically states: 1) linguistic works (written works, oral works, computer programs), 2) music works (with or without words); 3) drama and drama-musical works; 4) choreographic and pantomime works; 5) works of fine art (the field of painting, sculpture and graphics), regardless of the material they are made with, and other works of fine art; 6) works of architecture; 7) works of applied art and industrial design, 8) photographic works and works produced by a process analogous to photography; 9) audiovisual works (cinematographic works and works created in a way similar to cinematographic creation); 10) cartographic works; 11) presentations of a scientific or technical nature as as drawings, plans, sketches, tables, etc.. 36„Službeni glasnik BiH“ no. 63/2010. 37Article4. Section 1. BLCRR. 38This provision includes: a) linguistic works - literary texts, studies, guidebooks, articles and other writings, as well as a computer programs; b) oral works - speeches, lectures, sermons and other works of similar nature; c) drama, drama-musical and puppet performances; d) choreographic and pantomime works; e) musical works with words and without words; f) audiovisual works - cinematographic works and works created in a manner similar to filmmaking; g) works of fine art - paintings draw- ings, prints, sculptures and other works of similar nature; h) works of architecture - sketch plans, blueprints and constructed objects; i) the works of all branches of applied art, graphic and industrial design; j) photographic works and works produced by a process analogous to photography; k) cartographic works, and presentations) scientific or technical education (technical drawings, plans, charts, forms, expertise, expert opinion, the presentation in the form of plastic and other works of similar nature. 111 5.VAT and sales of art works - reasons for special treatment

VAT taxpayer is an individual or shifted to the next participant in • system of VAT calculation, and Accordingly, it can be concluded economic entity conducting a trade.39 states that their tax base is the that EU pays great attention to business by delivering goods or With the abovementioned in mind, difference between the total the art market tax competitiveness providing services to the extent it is obvious that the legislator value of delivered and purchased in terms of creation of conditions above the legal minimum, or a introducing a special VAT scheme goods in the tax period. for negative effects reducement person that is eligible to voluntarily for works of art in the VAT Directive • Reduced tax rate. Allows described in paradoxes of Value register as a taxpayer. Persons who has tried to avoid as far as possible taxation of the artworks’ trade at Added Tax. are not liable to VAT do not pay VAT negative effects of these paradoxes discounted rates (not less than on their delivery, but also have no in a way that provides the following: 5%) in order to avoid as possible right to tax deduction charged by • The taxation of the difference the shifting of Value Added Tax their suppliers (“input tax”). Results in price. Taxable is only the on buyers of art objects that of these rules are the so-called difference between the are not in the VAT system in the paradoxes of Value Added Tax as purchasing and selling price following cases:40 follows: of works of art, and so it is - Art works’ import; avoided in an indirect way the - Delivery of artwork performed • The first paradox “tax- acumulation of taxes paid in by the author or his successor; exempt is in fact taxed.” Persons previous stages of artwork’s - Delivery of artwork occasionally that are not liable to VAT, in fact, trade when it is was purchased performed by a taxable person bear the tax burden of this tax by persons that are not in the who has no capacity as an art (input tax), because that persons VAT system, dealer – VAT taxpayer when have the consumer status and the • Optional application of standard that person has only imported burden of taxation is shifted on taxation. Allows the use of a work of art or when the work them. Also, increasing the selling the regular system of VAT of art is delivered to that person price, tax burden is shifted to all calculation and payment when by the author or author’s legal persons and entities which are not acquiring the artwork from the successor. VAT taxpayers. subjects that are in VAT system. • Second paradox: “taxed is • A simplified taxation. Allows actually tax-exempt”. Taxpayers to certain categories of art can deduct VAT charged by their dealers to use simplified suppliers from their VAT obligation, and positive difference can be

39See: Popović D. (1997), pp. 808-810. 40Articles 98-99. and 103.VAT Directive.

112 6.VAT treatment of artworks transactions - the Western Balkans

Once we have outlined the concept Given the above solutions, it may necessary to define this special VAT allowed to declare VAT in its invoices. of an artwork in the law, and reasons be concluded that the VAT taxpayer scheme in details in order to avoid Another distinctivness provided by for the introduction of a special VAT employs general taxation regime misunderstandings in its use. BLVAT is the possibility of VAT payment schemes for works of art, we will whenever the works of art is purchased only on the amount of the commission address the regulation of these special from persons that owe VAT on the basis Unlike LVAT that dedicated only one charged by the taxpayer for the VAT schemes in the analyzed countries. of performed deliveries, paying in this Article to the special VAT schemes for purchase or sale of artwork at the case VAT at the general rate of 18% on artworks, BLVAT devoted to this issue public auction.48 SERBIA the full amount of sale prices, excluding 5 Articles.42 It is instantly recognizable the VAT with the right of the input tax that use of this special tax regime is It is notable that BLVAT recognizes the In the Serbian Tax Law, a special VAT deduction. However, this formulation not mandatory leaving to the taxpayer need to avoid and / or mitigate negative schemes for works of art is regulated ignores the case when the VAT taxpayer the right of options.43 In this way, on effects of the so-called. VAT paradoxes by a sole Article of the LVAT and with imports the work of art, considering the side of the party trading with works in the case of persons engaged in the Regulation. Under this article of LVAT, that in such case the person that has of art are avoided negative effects of trade of works of art, and in this regard the basis for the calculation of Value delivered the artwork does not owe the so called first paradox of the Value a positive assessment of these tax Added Tax for artworks is the difference Value Added Tax but VAT taxpayer that Added Tax, already described. Next, it solutions can be given. However, BLVAT between the selling and purchasing has imported the work of art for the specifies in which cases the taxpayer does not provide taxation of works of price of goods minus the Value Added purpose of its further resale. Of course, has the right to apply the special VAT art at a preferential rate. Thus without Tax included in that difference, in the we do not think this was the intention schemes 44, and according to the the prescription of this privilege, an case when a taxpayer acquires works of of the Serbian legislature, but that this criteria on the status of a person that opportunity is missed to increase the art from the person that does not owe illogical solution is result of incomplete has purchased a work of art intended for tax competitiveness of the art market in VAT based on delivery, or by persons regulation. In addition, in the context of resale.45 As in the case of the Serbian Bosnia and Herzegovina, which would that also owe VAT on the difference the tax competitiveness of the Serbian LVAT, in BLVAT the tax base is defined be in full compliance with the tax rules between the selling and purchasing art market, we notice that the Serbian as the difference between the selling of the European Union. price. LVAT prescribes the limitation legislature does not prescribe any and purchasing price 46, with further under which the taxpayer is not allowed application of the reduced VAT rate on detailed definition what constitutes to separately declare the Value Added artworks’ trade. purchasing and selling price,47 and that Tax in the invoices or other documents taxable base is zero when purchasing and shall not be entitled to deduct We believe that regulation of the whole price exceeds the selling price. Of input VAT where the VAT is owed on special VAT scheme for artworks course, in all cases when applying the difference between the selling and taxation in just one article does not specific taxation procedure taxpayer purchasing price.41 present good approach and that it is can not use the input tax and is not

41Article 36. Section 4. LVAT. 42Article 47-51 BLVAT.

113 Similar to the legislature in Bosnia and VAT schemes), as well as if the taxpayer taxation, we believe that this issue analyzed jurisdictions, having in mind Herzegovina, Croatian legislator has may use the special VAT scheme by his is resolved in the basically same way its soon EU integration. mapped out a special system of artwork own choice and in the case of importing in both laws and that successfully VAT taxation, described in the CLVAT artworks or when works of art are eliminates negative effects of the so- terminology as “special treatment for delivered directly by the authors or their called paradox of Value Added Tax on taxation of margins on the sale of successors. However, if the taxpayer sellers of works of art. On the other used goods, works of art or antique makes this choice he is obliged to inform hand, none of these laws does not objects.”49 Croatian VAT taxpayer has the tax authorities about this and to provide a reduced VAT rate for artwork the option whether to use the general be observant for at least two years of taxation, as missed opportunity to regime of taxation, for each individual a choice he or she made.� Of course, reduce the effects of VAT shifting on transaction. However, if using both in all cases of special VAT schemes artworks’ buyers. Therefore, it can be general and special taxation system in application, the taxpayer may not use concluded that in this regard space for the same period, taxpayer must provide the input tax and may not declare VAT improvement of tax competition exists a separate record on transactions at its invoices. CLVAT does not provide and that it should have the greatest depending on selected type of VAT specific procedures for the sale of art significance for Croatia in relation to all taxation, and the Minister of Finance works at the public auction when the is authorized to prescribe the form of seller is entitled to a commission by the Table 1: Index of benefits provided by VAT Directive these records.50 Further, the solutions contract, how BLVAT provides. are similar in respect of when special In fact, despite minor differences VAT schemes is applied (purchases between the CLVAT and BLVAT in from persons that are not liable to VAT connection with the implementation and other persons that apply the special of special VAT schemes for artwork

43According to Article 47 Paragraph 1 BLVAT, “Every tawpayer who, in performing its activities, is working in his own behalf or on behalf of another person pursuant to a contract under which commission is paid for the purchase and sale, and who purchases or receives used goods, works of art, collectors’ pieces and antiques, with the intention of resale (hereinafter referred to as resellers) may choose taxation calculated on transactions related to certain items, in accordance with this Article and Articles. 48th and 49 “. 44Article 47. Paragraph 7. and Article 49. Paragraph 1. BLVAT 45In the case of works of art these provisions could be, mainly, apply to acquisitions from persons who are not liable to VAT and other art dealers whose turnover is also taxed by a special procedure (Article 47, Paragraph 7 of BLT). In addition, there is a possibility of application of a special procedure in the following trade cases: (1) works of art imported the taxpayer himself, (2) works of art that the taxpayer receives directly from the artist or his successor, and (3) works of art that the taxpayer receives on the reduced rate from the taxpayer who is not a reseller 46(Article 48. Paragraph 1. BLVAT), 47The purchasing price for the reseller is defined as “total amount paid in cash, goods or services, including all taxes, fees, expenses and charges paid by the reseller, the person from whom he obtained such goods.” On the other hand, selling price for the seller is defined as “the total amount that the reseller received or should receive from a buyer or a third party, including subsidies that are directly linked to such trade, taxes, commissions, packaging costs, transport and insurance charges to the buyer by the reseller, including VAT. “ We believe that this detailed definition of the purchasing and selling prices is useful and removes many doubts that the issue may arise in practice. 48The invoice issued by the auctioneer to the purchaser must state the price of goods obtained in the auction, taxes and other fees and direct costs (commissions, packaging costs, transport and insurance), which the auctioneer charges to the buyer, but the value added tax can not be stated separately on invoice. 49Article 22a-22h CLVAT. 114 7.Concluding Remarks and Recommendations REFERENCE :

As from the above analysis of special VAT purchases works of art by persons other than 1. Antić I . et all (2010) „Porez na dodatu glasnik Federacije BiH, no. 97/07, 14/08, schemes of artwork taxation can be seen, art dealers, and occasionally sells works of art vrednost“, Beograd, Privredni savetnik. 39/09. none of analyzed countries did use all the that have imported themselves or that were 2. Ault H. et all (2004) Compartive Income 13. Zakon o porezu na dobit, Službeni possibilities that VAT Directive provides. Of purchased from the author or his or hers legal Taxation, Hag, Kluwer Law International. glasnik Republike Srpske, no. 91/06. course, this circumstance unfavorably affects successor. In this way, the possibility has not 3. Hemels S. (2005) Art and European 14. Zakon o porezu na dobit pravnih lica, the competitiveness on the art market of been used to reduce the negative effect of the VAT http://papers.ssrn.com/sol3/papers. Službeni glasnik Republike Srbije, no. analyzed countries. On the other hand, the first paradox of the Value Added Tax. cfm?abstract_id=1959979 (pristup 25/01, 80/02, 43/03, 84/04, 18/10, fact that possibilities provided by VAT Directive 02.05.2012) 101/11. are not used does not mean that legislation As far as Serbia is concerned, the objection 4. Popović D. (1997) Nauka o porezima i 15. Zakon o porezu na dodanu vrijednost, of analyzed countries is not harmonized with may be made ​​in terms of the lack of regulation poresko pravo, Beograd, COLPI, Savremena Narodne novine, no. 47/95, 106/96, European legislation in this area or that the for special VAT schemes for artworks which admnistracija. 164/98, 105/99, 54/00, 73/00, 48/04, process of integration will require the use of can result in the emergence of various 5. Popović D. (2008) Poresko pravo, 82/04, 90/05, 76/07, 87/09, 94/09, provided benefits. In other words, we are talking concerns regarding its specific application. Beograd, Pravni fakultet Univerziteta u 22/12. only about the possibility that is not binding for We pointed out that such legislation leads to a Beogradu. 16. Zakon o porezu na dodatu vrednost, the Member States of the European Union, as situation when a person that imports a work of 6. Pravilnik o utvrđivnju dobara Službeni glasnik Republike Srbije, no. well as for countries seeking to join it. art for its resale would not be entitled to input koja se smatraju umetničkim delima, 84/04, 61/05, 61/07. When we look at the rules governing special tax due to the fact that this person has actually kolekcionarskim delima i antikvitetima, 17. Zakon o porezu na dodatu vrijednost, VAT schemes for artworks in the jurisdictions performed import in this case and owns Value Službeni glasnik RS, no. 105/2004. Službeni glasnik BiH, no. 09/05, 35/05, analyzed in regard to the solutions contained Added Tax, and not a foreign person that has 7. Rohatgi R. (2002) Basic International 100/08. in the VAT Directive, it can be concluded that performed the delivery of the artwork. Taxation, Hag, Kluwer Law International 18. Zakon o porezu na dohodak, Narodne none of reviewed jurisdictions goes beyond 8. Zakon o autorskom i srodnim pravima, novine, no. 177/04, 73/08, 80/10, what is allowed by the VAT Directive. However, Accordingly, it can be concluded that in Narodne novine, no. 167/03, 79/07. 114/11, 22/12. we notice that none of analyzed jurisdictions all observed states there is a room for 9. Zakon o autorskom i srodnim pravima, 19. Zakon o porezu na dohodak, Službeni has used all opportunities to improve the tax improvement of the competitiveness on the art Službeni glasnik BiH, no. 63/2010. glasnik Federacije BiH, no. 10/08, 9/10, competitiveness of the art market. With respect market. To the extent that Serbia is concerned, 10. Zakon o autorskom i srodnim pravima, 44/11 to all three jurisdictions, the above conclusion it is necessary to further improve and refine Službeni glasnik Republike Srbije, no. 20. Zakon o porezu na dohodak, Službeni applies primarily to the failure of possibility to the regulation for special VAT schemes for 14/2009 i 99/2011. glasnik Republike Srpske, no. 91/06, prescribe a lower rate of VAT in the case when artworks, which should not present a major 11. Zakon o porezu na dobit, Narodne 128/06, 120/08, 71/10, 1/11. a person that is trading with works of art: (1) problem considering that there are good role novine, no. 177/04, 90/05, 57/06, 21. Zakon o porezu na dohodak građana, imports works of art, (2) purchases works of models in the form of the VAT Directive, and 146/08, 80/10, 22/12. Službeni glasnik RS, no. 25/01, 80/02, art from the author or his legal successor, or (3) existing solutions in the neighboring countries. 12. Zakon o porezu na dobit, Službeni 43/03, 84/04, 18/10, 101/11.

50Article 22a. CLVAT. 51Article 22g. CLVAT. 52Article 22c. CLVAT.

115 Prof. Gojko Rikalović, PhD University of Belgrade, Faculty of Economics Hristina Mikić, MSc SFBC-Group for Creative Economy, Belgrade ECONOMIC DIMENSIONS OF THE ART MARKET IN WESTERN BALKANS AND Dejan Molnar, MSc University of Belgrade, Faculty of Economics RECOMMENDATIONS FOR IMPROVEMENT OF ITS DEVELOPMENT UDK: 330.1; 330.34 (497); 338.4 (497)/111

SUMMARY: 1.Western Balkans as art market space

The paper deals with the economic In the time of the second wave of the the national art scene. Beginning of the crisis and inflation, political instability in conditions and tendencies of the art global economic crisis caused by the 21st century brought a shift: opening of the region, disintegration of Yugoslavia, market in Western Balkans through its large public debt, there is an increasing national cultures to the world of art trends war circumstances, while art works, genesis and socio-historical context. need to analyze the culture as a sector and building cultural policy between the collectors’ pieces and antiques were In the second part instruments of which needs to operate efficiently and need to support universal art projects and sold at very low prices. The whole period cultural policies and environment for provide funds for the development. those shaping an environment of national was characterized by stagnation and art development of the art market are As a result, this traditional distinction cultural existence. Balance between market crises, while unregulated markets analyzed. Structural analysis is based between the public and private or non- the hidden nationalism and openness, of former Yugoslav republics, this time on the results of the desk and empirical profit and commercial in the field of primarily towards the European Union in newly formed independent states, research of actors active on the art culture is becoming increasingly blurred, marked the first decade of this century. present the space not only for fraud but scene of individual Western Balkans and more elastic. Integrated networking The art market has not experienced major also for speculative trade of works of countries, conducted during May-July with corporate culture and obvious transformations, remaining marginalized art, selling pieces from art collections 2012th, as well as their assessment social orientation towards consumption, in the public policies’ discource. The period in order to secure material existence of the instruments of cultural policies leisure and cultural facilities influenced from the late 1980s and early 1990s for the owners.2 The whole period was in the field of visual arts. The last the inclusion of the culture in economic was characterized by a significant share characterized by mediocrity, without section is devoted to recommendations sectors. In this context, aestheticization of state companies, co-financing the many ideas or innovations, more galleries for improvement of the art market of all areas of human life implies a change most important events in visual arts, and were at the edge of survival, and without development in the Western Balkans of cultural policies from the “culture for all” creating large state-owned collections of a clear role in the cultural policy system. At form to a new concept “all with culture”.1 exceptional artistic and historical value too that time, works by renowned artists were Keywords: Western Balkans, art market (JAT, Invest Bank, Jugobanka, Beobanka, sold in the market, while the sales of works development index, public policies Western Balkan as ​​the art market space Dunav Insurance Company, INA, etc.). Art by emerging and young artists became presents an abstract construction in the market was encouraged with purchases almost impossible. Middle class buyers cultural policy discours, approaching this made by the state, and significant demand almost disappeared, and economically concept in a relativistic way and changing was created by representatives of the capable buyers of this age were only the relationship between arts and economy higher middle class who have followed interested in art works that were already depending on the socio-historical context. exhibition policies of major galleries in positioned on the artistic map, and only for Thus, during the 1990s in the countries Yugoslavia and had a decent knowledge the well-known artists (Olja Ivanjicki, Peter of the region prevailed cultural policies about the art tendencies. Lubarda, Milan Konjović, Bukovac, etc.). fostering the idea of national identity and based on the instruments mainly focused During the 1990s art market experienced In early 2000, revival of the visual arts on local artists and their position on complete devastation, caused by the system in the region began, mainly at

1Leksikon savremene kulture: teme i teorije, oblici i institucije od 1945-danas (ed. R. Šnel), Beograd: Plato books, 2008 2See more: Skroza, T. (2005) Beskrajna pljačka, “Vreme” no. 773, 27. October 2005. http://www.vreme.com/cms/view.php?id=431682 (access, 15.06.2012)

116 2.Public policies and environment for the development of the art market in Western Balkans the national level, with no pretensions The lack of knowledge about the the central urban area, which absorbs dominant core of the art market (e.g. to regional networking or creation of a art market, and of interest in its about 75% of gallery infrastructure Bosnia and Herzegovina, especially the joint art space in the Western Balkans. improvement, are equally present (Belgrade, Novi Sad, Zagreb, Split, Republic of Srpska). With the economic revival in the region, on the one side of the art scene Rijeka, Sarajevo, Tuzla, Mostar, Banja the circle of customers started to stakeholders and on the other side at Luka, Skoplje, Tirana), results in the fact Several facts should be noted that affect expand, and the art market became the state level. Public policy is often in that only 65% ​​of the population of the underdevelopment of the art market in more diverse. However, contemporary need for innovative forms of support region can meet their needs in terms of the region: unclear profile of existing art was still characterized by insufficient for the creativity, mostly relying on visual arts. galleries in terms of their exhibitional, participation in the global and European the traditional instruments, including educational and sales functions, under- trends, indicated by the fact that the direct funding of programs, mainly of It is noted that average values of representation of sales at auctions and most important art fairs rarely present public insitutions, or to a lesser extent this indicator are unequal among the poor infrastructure for auctions, illegal the works of artists from this region, or civil initiatives or value-ideological countries. So at one side are placed and unregulated flow of sales (resellers, if they do, promotion strategies have instruments (e.g. awards) that often countries with an average dispersion directly in art studios, internet, etc.) passive character, and it is very difficult lose their importance as a mechanism of the infrastructure (Montenegro, which makes it difficult to create a to determine their achievements and of public confirmation and affirmation Macedonia), and on the other side regulated and professional art market. outcomes.3 Except for the major projects, of creativity.4 states slightly behind the region’s All this in turn leads to a situation the presence of contemporary visual art is average (Serbia and Croatia) as well where private initiatives in the gallery still sporadic, based on initiatives of artists Institutional resources of the art market as those that often exceeds this infrastructure are marginalized and and foreign cultural centers, without the are not developed sufficiently, and value for several times (Bosnia and aimed at exhibitional and presentational current vision of the importance of the in compliance with the demographic Herzegovina, Albania). These findings activities only, while encouragement for presentation of contemporary creativity structure of countries in the Western point to the structural inequality and art production and sales of works of art and its affirmation in the international Balkans. There is a significant number different degrees of the art market is often absent. Especially are missing context. It seems that cultural policies in of galleries in Serbia and Croatia, development in the region. While the private galleries promoting artists of the Western Balkans, in their own way, countries that in former Yugoslavia had mixed ownership structure is present a younger generation, and even less are still concentrated on traditional forms the most developed art market. Index in Croatia and Serbia in ratio 70:30% of those involved in their affirmation of cultural cooperation, which often is of gallery infrastructure dispersion in favor of public gallery spaces, this on the international market. There are not systematic in approach and without shows that on every 10.000 residents ratio in other countries is significantly few examples, such as Zvono Gallery articulated narratives in relation to the comes on average 31.9 galleries in ​​the below the acceptable minimum limit, in Belgrade or Zone Gallery in Zagreb, existing values ​​and art tendencies. Western Balkans area. Concentration in often making the public gallery system which through their exhibition concept

3Artists from the region usually are presented at the Venice Biennale, which is traditionally considered as the most important event in the field of contemporary art for the presentation of artists and their works. Except for the Venice Biennale participation in the Berlin Biennale, Documenta in Kassel etc. is also very important. However, the presentations of these fairs are mostly of passive character, with no clear strategies towards regional artists’ placement on international art market, as well as in economic terms. 4It is not uncommon that the prize winners in many cases refuse to accept the award because the award does not reflect the essence and purpose for which they are presented, and often those who received awards were “juried” among themselves. 117 are active in creation of an art scene of art market and with the least impact and often helps the establishment of without clear criteria. The absence of a younger generation of artists.5 on its development. This result is links between the arts, civil society regulated market and relevant criteria consistent with the real situation in and business sector. The fact that for evaluation, leads to the market The research results on the art the Western Balkans, where the region almost 4/5 respondents had no clearly with relatively low prices for artworks, market in Serbia, Croatia and Bosnia- of 17 million people is covered by only established relationship, or a policy of ranging from 100 to 300 euros, while Herzegovina show that positioning of five auction houses. It should be noted cooperation with the business sector, the works by established artists of different subjects is mainly at a very that the establishment of auction this aspect is assessed as very bad the 1950s, 1960s and 1970s, are low level, and their influence limited.6 houses presents a step towards the (47.5%), which is often the cause of on the other hand, overestimated with For example, respondents rated the stimulation of the art market, because galleries’ poor financial position. On relatively high prices. experts for artworks’ market value they contribute to the creation of the other hand, in all Western Balkans estimation and work of auction houses individual and corporate collections situation with an assessment of the as the least developed aspects of the - link that forms the main market market value is highly subjective and

Graph 1: Average number of galleries in Western Balkans countries, 2011.* Table 1: Art market actors in the Western Balkans

15

28,1 N/A 23,3 N/A N/A N/A 30 N/A

61 * Galleries active in the field of visual arts recorded as gallery spaces. Because of the insufficient evidence of galleries, exhibition spaces and showrooms, it is estimated that there is a significant number of non-specialized 9,5 facilities and organizations that only partially cover the area of the art market, but data on them is not available in a systematic manner. Included are galleries which operate as independent institutions or as parts of polyvalent institutions (e.g. community centers and cultural centers), as well as galleries in the public and private property. .* (average values on every 10.000 citizens) ** Assessment in consultation with relevant art market stakeholders. *** Only registered as legal entities.

5Zvono Gallery, owned by Ljiljana Tadić is one of few promoting artists of younger generation on artfairs like Artfair, Art Moscow, Kunstart, and since presenting artists at the Vienna fair in 2005., it has officially become the first gallery to launch young Serbian artists on European art market. www.galerijazvono.org. Zone Gallery, run by Rajko Murtić, apart from the established artists represents through the agency painters, dealing with their placement abroad, and is particularly known for promotion of younger Croatian artists in the country (through exchange programs with other galleries), and abroad. Ožegović, N. (2003) File: Croatian art market: The most expensive painter Croatian Zvonimir Mihanovćc Nacional no. 417, 12 November 2003 http://www.nacional.hr/clanak/13633/najskuplji-hrvatski- slikar-je-zvonimir-mihanovic (access, 15.06. 6 Sources of calculations and estimates by: Fine art activity, realize News, 2.1. 12.09, (2012) Department of Statistics of the Republic of Macedonia, http://www.stat.gov.mk/pdf/2012/2.1.12.09.pdf; Sta- tistical Office of Montenegro www.monstat.org; Artists’ Association of Montenegro , http://www.ulucg.me, Association of Fine Artists of Serbia www.ulus-art.org; Association of Fine and Applied Artists and Designers of Serbia www.ulupuds.org.rs; Croatian Society of Artists www.hdlu.hr, Croatia Association of Applied Arts Artists www.ulupuh.hr, Association of Visual Artists of Bosnia and Herzegovina http:// ulubih.ba; Statistical Office, Albania http://www.instat.gov.al, Creative Industries Mapping in Albania (2007) British Albania Council. 118 In the given circumstances and in is dominated by several organizations organization, mission and policies, higher with group of individual artists, comparison with other components and artists (over 60% of respondents). obtained in that period, although with almost ¾ of them that rarely or of the art market, gallery system and These results indicate the dominant market circumstances in which they never co-operate with others in their curatorial practices are assessed as perception of respondents that art operate had greatly changed . profession. In the case of organizations, a moderately developed aspect of market conditions are not healthy and that number is twice smaller (38%). the art market and its impact on the competitive and not encouraging for Communication, networking and This situation can be attributed to the art market’s tendencies as moderate, the art production. With regards to the cooperation between different actors significant role of donors in the funding although a number of galleries can not professional standards and the role of in the art market were rated mostly of contemporary art, who, through be praised for their innovative approach artists’ associations, assessment mark as moderate (45% of respondents), their policies put the emphasis on in mediation and stimulation that would by most respondents was moderate 30% of respondents considered that partnerships and networking, while supportively act on the audience. As for (58%). are of limited range, and 25% as low. this criterion is irrelevant to public the art production, critics and media, It is also evident that different actors administration bodies in culture, public dominating point of view is that in the The role of artists’ associations from rarely cooperate with each other or only institutions, professional associations, given circumstances their resources are the perspective of the profession sporadically (76% of respondents), etc., most of whom do not have clear not used sufficiently (figure 2), which and protection of members’ interest, while the lack of networks is even instruments to launch structural leads towards a poor development is estimated with the limited range of taste for contemporary art, low (about 33%), because they are guided Graph 2: Position and influence of different subjects on the art market of individual Western Balkans countries awareness and poor educational level by particular interests. A number of (Serbia, Croatia, Bosnia and Herzegovina), 2012. of potential buyers, collectors, arts respondents (1/5) ranged their work consumers. at very low level, with an opinion that it should be reformed, while less than Regarding the assessment of the market half respondents believe that their structure, majority of respondents work is mediocre and that it continues believes that there is no competition to improve. Professional associations in the art market, that is monopolized that operate in the Western Balkans (more than 1/3 of respondents), represent trade associations formed while another group of respondents during the 1950s and 1960s, in the believes that the market structure has former Yugoslavia, and they have character of an oligopoly, and that it often kept to the present bureaucratic

7The research was conducted in the May-July 2012th year, through electronic and individual surveys, interviews and direct conversations. The goal was to acquire knowledge about the subjective evalua- tion from the relevant stakeholders on the state of the art market and the problems in it. Since there is no complete database of art market’s participants in the region, it was presumed that detailed insights into the structure of the market can be obtained from the participants who are active in the visual arts scene for over 10 years, active in the art market as well, with 5-10 projects per year on average in the period 2007-2011, and to exceed the financial threshold of EUR 15,000 annual income. Also, one of the main criteria was that the respondents were primarily engaged in the visual arts and that within their annual programs / projects, visual arts account for more than 80%. Herewith we have intented to exclude from the sample in the first stage, all those organizations where visual arts does not present a priority. We note that the obtained results are the outcome of a pilot study that has not been done in this area so far and that it should be improved in the future and continuously enforced. 119 changes in the market of visual arts. we should revise current practices in culture. Unfortunately, oposite to this sectors,7 complicating the possibility The quality of the relationship between the field of cultural relations and seek aspiration, a small percentage of the of their direct determination.8 As in the state and art market actors was the means to broaden the channels of budget is allocated to the funding the case of the gallery infrastructure, also poorly rated, where about 43% diffusion, and forms of participation on of contemporary art production, as at the regional art market there are of respondents believe that the regional and international level in the evident in Table 2. countries that are above the regional cooperation does not exist or is of ad hoc form of forums, debates, conferences, funding average (Croatia, Serbia and character, which indicates a very weak and integrate more sophisticated Average budget allocations for the Montenegro), and on the other end and participatory process involving all and extensive stimulation techniques visual arts in the Western Balkans those that are significantly staying stakeholders in the development of the in their implementation. This should region is around 0.4 euros per capita, behind, even for several times below art market, particularly at the level of be followed by adequate financial although precise amount of these funds the average (Bosnia and Herzegovina, public policies. instruments. Assumptions for is difficult to determine, given that often Macedonia). improvements in this area are further funds for the visual arts may appear in Regarding the international openness of the Western Balkan the financial plans of cultural institutions Most of the Western Balkan states cooperation, and connectivity countries for the expansion of cultural that operate in other areas and and their programs and projects in the across national boundaries, most of facilities at the regional level, and the respondents (76%) have established creation of institutional conditions that Table 2: Visual arts funding in Western Balkans countries links with countries in the Western would increase the mobility of artists, Balkans, while as much as 15% of creators and cultural programs. respondents did not participate in cross-border cooperation projects with Financing of the visual arts is another similar institutions / individuals outside important aspect of cultural policy the country. These findings suggest that can act in the direction of the that we need a different approach art market’s structural development. N/A N/A developing strategies in terms of However, no matter how this instrument cultural relations, networking and offers a space to encourage artistic cooperation, where creative production creativity, it remains the biggest * assessment ** only for the central level ¹ entity level; ² total expenditure on culture per capita for funding distributed over the has great potential value, presenting problem in all Western Balkan countries, Federal Ministry of Civil Affairs, the Federal Ministry of Culture and Sports and Ministry of Education and Culture of the Republic specific works of creative expression which chronically tries to provide of Srpska. Information on culture funding at the entities and cantons is not available.³ Expenses for Culture are calculated on the basis of allocations from the Ministry of Culture of the Republic of Montenegro, as well as on the basis of allocations from the inherent to the Region. It seems that significant level of public funding for local municipalities with 89% of the population (Podgorica, Nikšić, Cetinje, Bar, Berane, Budva, Herceg Novi, Kotor, Pljevlja).

8Sources of author’s estimates and calculations by: Compendium of cultural policies and trends, 13th edition, ERICarts, http://www.culturalpolicies.net; Law on Budget of the Republic of Montenegro for 2011. no 01-842/55; Budget decision Podgorica in 2011, Budget decision Nikšić municipality for 2011, Budget decision Cetinje Municipality was in 2011, Budget decision Bar municipality for 2011, Bud- get decision of Berane for 2011, Decision Budva municipality budget for 2011, Budget decision of municipality of Herceg Novi in 2011, Budget decision for Kotor municipality in 2011, Budget decision of Pljevlja municipality in 2011; Mikić, H. (2011) Kulturna politika i savremeni izazovi finansiranaj kulture: međunarodna iskustva i Srbija, Kultura no. 130, pp. 75-103. Review of utilization of funds transfers in 2007, 2008, 2009 and 2010. Federal Ministry of Culture and Sports; Federal budget for 2007, 2008, 2009, 2010 and 2011. http://www.fbihvlada.gov.ba/bosanski/budzet/2011/bos/Bos1.pdf, Ministry of Education and Culture of the Republic of Srpska, http://www.vladars.net 120 field of visual arts are realized through arts funding indicates the poor state of An important distinctive feature of the representatives in the survey did not the public open calls. Although this this indicator (average score 2.1), but art market consists of the fact that want to participate in it and express their can be considered as a significant also indicates it as the biggest problem the market in practice is never the sole views on this aspect of cultural policy, form of decision-making process of the art scene development.9 On the mechanism of decisions coordination, stating their “antimarket orientation”, democratization in culture, there are other hand, the funding structure for but is often combined, to a greater that they “do not act commercialy”, certain restrictions in its use. First of organizations that are active on the or lesser extent, with the state that are “fighters against the market all it is an instrument characterized art scene shows that it is dependent interventionism. This includes primary “,” do not belong to the market” etc.11 by: certain unplanned character; it is on the state and to a lesser extent, reliance on market institutions and those Taking into account these views, we evident that it does not sufficiently on the international foundations, and involved in economic dimensioning can conclude that inefficiency of the follow clearly set goals of explicit and very poorly on the business sector. of art, while the state acts covering state can only be partly responsible implicit cultural policies; it is a form Small share of the business sector in the market failures and constructing for the underdeveloped market,12 of financing in some countries that the funding of contemporary visual more efficient market structure. This and that we can find very often a is not clearly targeted or has general production shows a fundamental understanding of the market does not passive attitude, resistance and lack goals that are difficult to evaluate weakness of the art scene, which characterize public discourse of the of understanding by representatives (and thus periodically improve); has can use resources available in the Western Balkans, where it is seen on a of the art scene themselves in relation a very modest budget (3-5% of the immediate environment in which they laic and superficial way, and reflections to this concept. It is interesting that in total budget for culture); dominantly operate. This weakness is deepening on the relationship between art and some art groups dominate the negative diverting funds to the presentation of the lack of a clear systematic approach economic value are simply rejected associations with the market as a works of art, and very rarely for the to the financing of culture, and lack of without valid arguments. Economics mechanism of coordination in the field production, and may raise the question adequate support instruments (e.g. of culture on the other hand, that of culture, which is often identified of its practical implications for the tax measures) that would strengthen supposed to examine this relationship with the “art commercialization dogma”, cultural life of the region, and equally and motivate relevant actors on active from the scientific perspective and to advocating the state patronage of art, in terms of encouragement of artistic cooperation with the business sector. establish a relevant basis for effective while on the other hand there are rare creativity. Results of the research also Approximately 50% of respondents management of cultural politics, was representatives of the art scene who confirmed that financing of arts in agrees that tax system obstructs the never developed and established in are considering the presence of the the current circumstances, is seen as development of the art market, while the Western Balkans.10 About the market elements, particularly in the the weakest aspect of the art market 43% considers tax instruments as restrictions that influence development form of cross-sectoral connections with development. It shows that subjective selective and with no significant impact of the art market, indicates the fact the corporate sector, as the road for assessment of respondents on visual on the art market development. that a particular group of art scene improvement of the financial position

9For example works of art purchased by the institutions, public authorities, etc. or events that are not primarily in the field of visual arts. 10Per capita public expenditures for visual arts do not include purchase of artworks by cultural institutions, and other public authorities, which can not be determined directly, and multidisciplinary projects and programs that are being realized as part of regular program activities of institutions that are not primarily involved in visual arts. 11Respondents perceive that in their work financial problems have the highest specific gravity, followed by organizational problems, and at the last place are the problems of infrastructure (facilities, equip- ment, etc.). 121 3.Recommendations for the improvement of art market development in Western Balkans not only for the gallery system, but It was noted that integrational processes in common trade platform, processing huge to the encouragement of competition among also for artists themselves. However, the world have significant influence on the number of transactions, transferring and providers of art services and expansion the impression prevails that negative overall economic, political, social and other exchanging information, trading in continuity of EU influence on the fields of art market implications of Western Balkans movements on a global level. Regionalization in a wider environment following time zones, globalization. unregulated art markets often lead the in any form can be observed on one hand as as well as number of other benefits. Logical actors of the art scene to access this part of the globalization, while on the other continuation would be the appereance of the Several factors influence the development of concept as something chaotic, negative hand can be seen as strategic process of common EU art market vision, especially for the art market, and they should be considered for the development of art, without confrontation to globalization. Related to the market of art goods. in terms of its dynamic development: a profile and with a strong personal that, different regional associations are involvement of regional and global art trends, feeling that they do not belong to it. formed, representing regional integrations on In this regard, integration processes are very regulatory arrangement and clear profile basis of economy, politics, communication, important in order to access art markets of roles of different actors in it, relative economic ecology, culture and other. developed European countries. However, power of buyers on the market and growth while their contemporary art markets are of national economy, growth in demand Creation of the regional art market on the thoroughly regulated and standardized, it is for luxury goods, investment motives of basis of interregional connections and evident that the process of EU art markets buyers, administrative barriers and costs of cooperation between the national art integration is still not completed. The main transfer between different art markets,13 markets in contemporary circumstances priority of EU towards the integration of development of a taste for contemporary is significantly easier with the use of the national art markets in the European art works, etc. Most of these conditions are informational and telecomunnicational single art market, is a dynamic consolidation not met in the Western Balkans and we can technologies. This would allow connections of improved and secured implementation talk about different scenarios of possible between auction houses, galleries and other of adopted rules, and then introduction development for art markets in the region. relevant actors located in different states of better policies and improvement of the In this regard, it should be noted that only and their activities on identical or similar way, regulatory standards and supervisory development of the art market can provide trade with different works of art through convergence. In addition, a priority is given long-term sustainability for contemporary art

12The primary sociological and cultural understanding and interpretation of the art market is confirmed by sporadic research on this subject, which is often involved in a perception of cultural habits and needs of a wider audience and consumers of visual arts (e.g. Dragićević-Šešić, M. Muzeji i galerije u Srbiji 1996, Inđić, T. Tržište likovnih umetnosti, 1986), as well as those more recent, focused on the galleries program and presentation concept (Tadić, D. Galerije i umetnički prostori u Srbiji, 2012; Matinović, D. Izlagačka politika beogradskih likovnih galerija, 2012). In addition to the fact that art market research is very rare, it can not deal with its economic and regulatory aspects sufficiently, so they remain partial, with no clear outcomes and practical impact on decision-making process in the Western Balkans. 13Respondents, who expressed negative attitudes in terms of the market and its relation with the art, refused the request made by the research team to state their position as clearly marked and quoted in the article, wishing to remain anonymous. It is interesting that among the respondents of this group are the creators who often qualify themselves in public as the managers in culture, concluding that respondents themselves are often unaware of it or “ashamed” of their belonging to the market structures in culture and active participation in the process of its construction. Given this fact, in the coming years more should be done to clarify this concept with artists and public structures in culture, in order to reduce the gap made by the lack of understanding and poor perception of contemporary phenomena of cultural policy. 14It should be noted that even the state structures (especially Ministries of Culture) do not perceive the market, its construction and regulation as part of their jurisdiction, but that it belongs to one of those public authorities who are dealing with the economy. This attitude greatly contributes to the lack of the measures that are aligned with the specific artistic sector, use of general economic policies that have little practi- cal effect on the development of the art market, as they are not targeted sectors. Art market representatives are aware of it since 50% of them perceives state administration as completely ineffective to fulfill its role in the art market development, while 50% thinks that the capacity of the public administration is very limited, sometimes the limiting factor in the development of the art market. 122 scene, as restraints of national boundaries stimulation of demand for works of art is instruments of cultural policy.14 Combination measures. Art market Diamond shows the lead not only to economic but cultural related to the development of the taste for of these instruments and their overall medium rate of all groups of cultural policy handicaps as well. It should be noted that works of contemporary art, which mostly scoring of 0,792 confirms that existing instruments. problems of the art market can include those lies in the hands of the art scene’s actors, system for the art market development is of internal character and actions arising structures and educational media. All this unsustainable.15 Central place in the analysis of the possibility from actors themselves (galleries, auction indicates that art market is a complex market to establish a single or common market houses, museums, curators, etc.) and those system in which different actors through It is characterized by instruments on takes the assess of the basic institutional of external nature that can be influenced their mechanisms of action and intersectoral unsatisfactory level that prevent dynamic assumptions and trends of art flows by instruments of cultural policy, in more cooperation can act in the direction of its and free development of the art market. liberalization in the Western Balkans. The or less extent. For example, regulation of construction and improvement. Figure 3 presents rates of different liberalization of the art flow is the basis for the art market is responsibility solely by the dimensions of cultural policy instruments, the regional art market functioning, without state and its effective public policies, which The effectiveness and development covered by the analysis that shows how which it would be impossible to make include modeling methods and mechanisms of cultural policy different instruments respondents rated certain instruments of any further step towards the integration. of institutional support for the art market. affecting the art market were rated based cultural policy. Thus, among the lowest rated Similarities and differences in the transitional Economic forces of demand for works on the development of the art market index, dimensions of the current cultural policy are processes of national art markets were of art present a problem for all Western designed in a way that it can assess the placed decentralization, quality and capacity observed and the same time in almost all Balkan countries, but its effect may mitigate effects of the current state of economic, of public authorities to fulfill their role in countries set identical or similar strategic the negative-growth tax policy. However, organizational, legal and value-ideological the development of the art market and tax development goals, above all, through their

15European Commission (1999) Report from the Commission to the Council on the Examination of the impact of the relevant provisions of the Council Direktive 94/5/EC on the competitiveness of the Com- munitiy Art Market compared to the third countrie’s Art Market, COM (1999)185 final, Brussels: Commission of the European Communities, p. 8. 16It is a methodology that was developed in basic form as a tool for quantitative evaluation of cultural policy instruments in the art market, and whose content will be developed further in the upcoming projects of the Group for the Development of the Creative Economy, which is a partner in this project. For the design of this index served the ideas and methodological frameworks that have been used for the design of IDEX media sustainability (Sustainability Media Index, IREX) and the Civil Society Index (CIVICUS Civil Society Index). Art market development index is aimed at the evaluation of cultural policy instruments, divided into four main groups: economic (indicator 1: the availability of funds, the funds for the development of the visual arts; indicator 2: access to public funds for financing of visual arts and transparency of funding; indicator 3: the quality of tax measures aimed at development of the art market; organizational (1 indicator: the ability of government agencies and their ability to meet these roles in the development of the art market, indicator 2: quality and effectiveness of institutional support for the development of the art market, indicator 3: the quality of the relation between state actors and the art market and the integration participation of all stakeholders in defining the art market developing dimensions, indicator 4: art scene decentralization), legal (indicator 1: the quality of legislation in the field of visual arts; indicator 2: intellectual property and copyright protection efficiency) and value-ideological (indicator 1: the quality of cultural policy instruments aimed at the promotion of creativity and production; indicator 2: perception of the relation between the business sector and the art scene; indicator 3: the quality of corporate social responsibility; indicator 4: level of corporate philanthropy). Each of these instruments was assessed by the respondents through closed-ended questions which more accurately described the situation in relation to respondents’ orientation. Processing the results, numeri- cal scores of 0-3 were given for all responses (0-does not meet these criteria, 1-satisfies the minimum criteria, 2 – meeting of the criteria is on the rise and 3-fulfilled most criteria). For each of the groups of instruments were calculated average values, and finally summed average values were collected from all four groups, assigning the average value of the Art market development index in 2012. This meth- odology will be improved in the future introducing a number of qualitative indicators through which it can spread the assessment quality and effectiveness of cultural policies, and do researches on cultural policies in other Western Balkan countries (Macedonia, Albania, and Montenegro). 17The overall scoring in the range 0-1 indicates unsustainable art market, instruments of cultural policies as unsatisfactory, preventing dynamic and free development of the art market; scoring in the range 1-2 shows art market system that seeks sustainability, cultural policy instruments aimed at sustainable art market establishment; scoring in the range 2-3 indicate a sustainable development of the art market system, instruments of cultural policies as satisfactory, encouraging an active and free development of the art market. 123 commitment to join the European integration integration processes, which are usually institutions, art market participants, the can not rule out the possibility of an access (EU membership). Therefore, we can state that placed at the end of the agenda. This concept protection of artists and their professional from surrounding countries as well. The the process of constitution of an adequate means that prior to the art market integration status, trade of artworks, etc., providing an concept of a regional art market is convenient political and economic environment has begun a number of other forms of connections and opportunity to determine potential position of because it is the question of a joint art market in order to create institutional preconditions integration should be achieved. the macro market structure with two possible creation between two or more states. Namely, for establishment of a regional art market in models of its organization: unique art market it is the question of bilateral agreements on the Western Balkans. The idea of a​​ regional The analysis of the national art markets and set of interrelated arts markets. This cooperation in a specific area addressed, but art market creation in the Western Balkans shows that a common art market would have second solution can be a common art market agreements that require certain activities at is a necessary process on the way of these great importance for all countries individually, with a single regulatory body, or with no single the national level that would even come to countries towards the EU. There are many but also for the community of all citizens as regulatory body. With regards to the level of their conclusion (harmonization of legislation, indications for the constitution of the regional well. Comparative analysis included many political, cultural, economic and other relations creation of institutions, etc.). Bearing in mind art market in any case, and that presents the relevant issues such as the legacy of the between the Western Balkan countries, we that the regional art market would function on interest of all countries in the region, to make previous system, the consequences of the assess that at this point the real choice is the the EU principles and standards, there is no it as soon as possible. Connecting art markets macroeconomic policy on the art market, formation of a regional art market as a joint impediment for the appearance of the artworks in the region is just one of many necessary legislation, financing mechanisms, art market art market without a single regulatory body, from other European markets (including the but with adjusted institutional features at the EU). So, only the integration of the art market Afirmation of creativity and talents Graph 3: Assessment of instruments of national level. would stimulate participants from other different cultural policy dimensions in the European countries to engage in a broader Regulations Western Balkans (Serbia, Croatia, Bosnia and Herzegovina), 2012. Regional definition is only conditional and not area of ​​the Western Balkans, and that would definitive, and therefore it is not necessary to provide a real opportunity for wider involvement Decentralisation include all Western Balkans countries, as we of “local” actors in the wider European space. Quality of relathionship between artist and state Graph 4: The diamond of art market in the Western Balkans (Serbia, Croatia, Bosnia and Herzegovina), 2012. Institutional support Economic instruments Quality and capacity of state bodies

Tax policy Value instruments Organizational instruments Acess to public funds and transparency

Availability of funds

0 1 2 2,5 Legal instruments

124 REFERENCES: WEBOGRAPHY

1.Dragićević-Šešić, M. (1996) Muzeji međunarodna iskustva i Srbija, Kultura 15.Skroza, T. i dr. (2005) Beskrajna Compendium of cultural policies and trends, 13th i glerije u Srbiji, Beograd: Zavod za no.130, pp: 75-103. pljačka, Vreme no. 773, 27. Oktobar edition, ERICarts, http://www.culturalpolicies. proučavanje kulturnog razvitka 10.Mikic, H. (2012) “Public policy 2005. http://www.vreme.com/cms/view. net 2.Dragićević Šešić, M. i S. Dragojević (2005) and creative industries in Serbia” 7th php?id=431682 (pristup, 15.06.2012) Hrvatska udruga likovnih umetnika primenjenih Menadžment umetnosti u turbulentnim International Conference on Cultural Policy 16.Tadić, D. (2012) Galerijski i umetničkih umetnosti www.ulupuh.hr, okolnostima, Beograd: Clio. Research, Barcelona, Spain, 9-12 July prostori Srbije, Beograd: Anonymous said: Hvatsko društvo likovnih umetnika www.hdlu.hr, 3.European Commission (1999) Report 2012. http://www.iccpr2012.org 17.Capaliku, S. (Albania) in Council of Ministarstvo civilnih poslova Bosne i Hercegovine from the Commission to the Council on the 11.Mikić, H. (2007) „Potentials for creative- Europe/ERICarts (eds) “Compendium of http://www.mcp.gov.ba Examination of the impact of the relevant led development in Serbia“, international Cultural Policies and Trends in Europe”, 13th Ministarstvo prosvete i sporta Federacije Bosne provisions of the Council Direktive 94/5/EC scientific conference: Contemporary edition, 2011. http://www.culturalpolicies. i Hercegovine www.fmksa.com on the competitiveness of the Communitiy Challenges of Theory and Practice in net Minstarstvo prosvete i kulture Republike Srpske Art Market compared to the third countrie’s Economics, Faculty of Economics, Belgrade, 18.CIVICUS Civil Society Index (2011) http://www.vladars.net/sr-SP-Cyrl/Vlada/ Art Market, COM (1999)185 final, 26-29. 2007, paper proceedings: Summary of conceptual framework and Ministarstva/mpk/Pages/default.aspx Brussels: Commission of the European Economic policy and the development of research methodology https://www.civicus. Zavod za statistiku Albanije http://www.instat. Communities. Serbia, pp. 129-141. org/new/media/CSI_Methodology_and_ gov.al 4.Inđić, T. (1986) Tržište dela likovne 12.Milivojević, Z. (2006) CIVICUS Civil conceptual_framework.pdf Udruženje likovnih i primenjenim umetnika i umetnosti, Beograd: Zavod za proučavanje Society Index Report for Serbia, Belgrade: 19.USAID (2011) CSO Sustanability dizajnera Srbije www.ulupuds.org.rs; kulturnog razvitka ARGUMENT & Center for the Development Index for Central and Eastern Europe and Udruženje likovnih umetnika Bosne i 5.IREX (2012) Media Sustanibility Index of the Non-profit Sector Euroasia, Washington: USAID Hercegovine http://ulubih.ba 2012, Washington: IREX 13.Ožegović, N. (2003) Dosije: Hrvatsko Udruženje likovnih umetnika Crne Gore, http:// 6.Leksikon savremene kulture: teme i tržište umjetnina: Najskuplji hrvatski slikar je www.ulucg.me; teorije, oblici i institucije od 1945-danas Zvonimir Mihanović, Nacional no. 417, 12. Udruženje likovnih umetnika Srbije www.ulus- (prip. R. Šnel) (2008) Beograd: Plato books Novembra 2003 http://www.nacional.hr/ art.org; 7.Matinović, D. (2012) Izlagačka politika clanak/13633/najskuplji-hrvatski-slikar-je- Vlada Federacije Bosne i Heregovine http:// beogradskih likovnih galerija, Beograd: zvonimir-mihanovic (access, 15.06. 2012) www.fbihvlada.gov.ba Zavod za proučavanje kulturnog razvitka 14.Rikalović, G., H. Mikić (2011) „Kreativne Vlada Republike Srpske http://www.vladars.net 8.Jorgoni, E. (2007) Mapping creative industrije i trgovinska razmena Srbije sa Zavod za statistiku Crne Gore www.monstat. industries in Albania, Tirana: British Council inostranstvom“ zbornik radova Ekonomska org; Albania. nauka u funkciji kreiranja novog poslovnog Zavod za statistiku Makedonije, www.stat.gov. 9.Mikić, H. (2011) Kulturna poltika i ambijenta, Kosovska Mitrovica, Ekonomski mk; savremeni izazovi finansiranja kulture: fakultet Priština

125 GLOSSARY OF TERMS AND CONCEPTS

Alternative art institutions – Art for offices Concept – model of system, curators, critics and the media, Author’s work - original creation by organizations and centers, founded sponsor partnership driven primarily market intermediaries - art dealers, an author, as an expression of his by legal entities, independent by artworks placement in the working galleries and auction houses, major inner experience of the world and the organizations / associations or space, and by influence of the events and audience, consumers and environment that surrounds him or her, individuals supported by various collections on employees motivation collectors. In today’s market operate expressed through different kinds of funding sources, whose independent and productivity. new determinants of the art market forms. position enables the implementation - marketing agencies, PR agencies, of innovative and experimental art Art investment - assessment of the insurance companies, as well as new Bureaucratization of culture – practices, as well as execution of market value and potential of an models of mediation and distribution increasing importance of a large corrective role in the art scene. artwork as a business investment. of information, introduction of new number of administrative tasks technologies and the Internet. (complex application processes and Art dealer – A person or organization that Art market - usually is not defined compliance with strict organizational acts as an intermediary in the purchase distinctively, and signifies a Art practice - a term that refers regulations) within the contemporary and sale of works of art; represents confrontation of supply and demand primarily to contemporary visual art art production. artists and works with collectors and works of spatial (visual and applied production, naming different models museums. Art dealers can usually art) and temporal arts (music, film, of art approach (such as neo-avant Black market - purchase or sale of illegal anticipate market trends, and the most literature, theater). It is a broader term, garde, conceptual art, postmodern, goods that violates the restrictions prominent can influence them. Usually because it trades with the artworks neoexpressionism, transavangarde, such as price control. Transactions on specialized for specific artists, art as tangible objects and with derived etc.). the black market are usually way for periods, styles or regions. In the field of property equivalents of intangible participants to avoid government price contemporary art commonly represent character – rights to use and exploit Art system – complex social organism of controls or taxes. It is also the method artists in their galleries, and often works of art (publishing rights, the right interdependent functional components for the illegal products trade - such as play a key role in the further course of to reproduce and multiply, etc.). allowing the production and reception the stolen works. artist’s career. Educational qualification of artworks. of an art dealer usually involves the Art market system - a complex and Co-financing - budget construction of study of art history, with subsequent interdependent system, whose quality, Artworks trade - artworks trade is any contemporary art production implies professional advancement in the area of ​​ character and interaction create transfer of ownership over the work of diversification of financing sources, that economic developments and specialized conditions and criteria for art price art or transfer of property rights from is the concept of co-financing, with the training documented with professional definition. Traditional system of the the author (or successor of copyrights) participation of several financial bodies. certificates provided by authorized art market includes artists (higher to the new owner. Contemporary art scene today is largely organizations or associations. education system), museums, gallery based on funding by the authors themselves,

126 who often work without a payment or a fee artwork to commercially use the same arts, certain media (photography or Independent cultural scene - and fund their own projects, their production for the purpose of material gain. drawing), multimedia. independent organizations, initiatives and public presentation. and individuals in the field of arts and Droit de suite - a part of author’s right General VAT rate - tax rate paid on the culture, promoting the development Commercialization of art dogma - the property component has an application value added tax in the case when for the of innovative and critical art practice, syntax often used to describe a way only with works of fine arts and refers delivery of certain goods or services is intersectoral cooperation in the field of of thinking, kind of relationships and to the distribution of the original work not specifically provided another rate culture, new models of organization and working model in art production, based of fine art and its reproduction. This of value added tax, that is if particular partnership of civil and public sector on the logic of trade, with narrower institute allows the author to work under goods delivery or services are not and decentralization processes in the and broader meaning of this syntax. certain conditions and to charge a fee legally exempt from value added tax. field of culture. In a broad sense, it signifies the in the future for each sale of his or her position when market relations become original work of art and its reproduction. Grey market - also known as parallel Individual Income Tax - Tax form dominant patterns of behaviour in market, is the way of products and works whose subject is the income earned by the field of material culture, in which Dysfunctional art market - a situation trade through distribution channels individuals. We can distinguish several art production arises as a result of that occurs when relations between which, while legal are unofficial, systems of income taxation: (1) cedula lucrative motives. Narrower meaning the supply and demand do not comply, unauthorized, and not intended by the - every kind of personal income tax is in turn, created under the influence or if their inconsistency is such that author. This term refers to workers taxed by a special tax at a flat rate; (2) of the Marxist school of thought price can not be regulated by market paid “under the table” without income global - all the income that an individual conncets the field of culture and arts conditions. tax payment or contribution to public realizes in the tax period would be with manifestations of value changes, services such as pension and health taxed with a comprehensive tax on raised by money in social life. Gallery system - a complex system insurance. a progressive rate; and (3) mixed - organized in relation to the legal status: certain combination of the two previous Contemporary cultural production - a when the founder is a legal entity - city Hyper production - number of artworks, systems. term that refers to the total production or private galleries; as part of a legal exhibitions and projects that exceeds in the field of contemporary art: music, entity - Gallery of the Cultural Center; actual social needs and creative Market of artworks - is a common theater, literature, cinematography and when the founder is the Republic, and organizational frameworks and practice of confrontation of supply and visual production. town, municipality, association or potentials of artists and the scene. demand for works of art as tangible an individual. And compared to the Overproduction in this context refers to material embodiment of creativity and Copyright property component - program concepts: galleries dedicated proportionally too many staff in the field imagination, originality, artistry and includes a number of author’s rights to contemporary art, experimental of art that does not correspond to social skill. enabling him or her as the creator of the practice, activism, fine arta, applied capacity.

127 Moral component of copyright - a set Primary and secondary art market - Quasi demand for artworks – falsely Source theory - is a collection of various of personal and legal authorities of When the work of art enters for the first created demand for certain works of art, theories of income with a common trait the author protecting the originality of time art market we are talking about which in the absence of administrative that determines the income as the the author’s inner (subjective) attitude the primary art market and about the measures would not exist. Demand for sum of net incomes, which at certain towards the work. secondary for works of art that have works of art created artificially, which intervals converge to individual from already been sold. When the work of art does not reflect the reality of supply sources which guarantee their regular Non-exclusive transfer of property is first sold at the primary art market, and demand. income. rights - the transfer of property rights it enters the secondary art market and when the licensee has no right to the achieved price has an effect on its Reduced tax rate of Value Added Tax Sponsor-collector – sponsor based prohibit other acquirers to commercially further market value. Contemporary - specifically prescribed rate of Value partnership building recognizable use copyrighted work, nor is authorized works of art belong mainly to the primary Added Tax to the defined delivery of corporate collections. to work further transfer. art market, without a detailed market goods and services, which is lower than analysis, predictive and comparative the general VAT rate. May prescribe Sponsor-user of the reputation - Paradoxes of value added tax. Represent value, which is why estimate of their one or more reduced rates of Value sponsorship of art projects and the specificity of the value added tax, market value is speculative and Added Tax. events that have a positive impact related to the fact that the burden of the difficult. Gallery system, art dealers, Secondary art market - market that on company’s image and is closely VAT is shifted to the person who is not cultural agents and promoters, as well constitutes around the resale of works associated with the function of market obliged to pay value added tax because as collectors, which act as trendsetters that have appeared in the primary art research, marketing strategy and it is not VAT subject or if its deliveries determine the character of the primary market. marketing communications. are exempt of value added tax on other art market. grounds. Sole assignment of property rights System of visual art - covers all Pure expectations theory – defines - transfer of property rights in which aspects of social and professional Price of art - money equivalent of the income as the monetary value of the case the acquirer is the only person systems that enable the production artwork market value net increase in economic strength of an authorized to exploit the economic and realization of the visual arts - individual in a given time period, with rights, while on the contract parties artists and education system, curators, Primary art market - a market in which the increase of the economic strength depend whether this right can be professional agents, cultural managers, original works of art are sold for the first expressed as the sum of the increase transferred to the other (the Law professional associations, institutional time. Generally prices in this market reflect in value of property rights and the expressly provides that the licensee system that includes museums, the result of supply and demand and its consumption of an individual. can not transfer acquired right without gallery system, exhibition spaces main actors are art studios, fairs and the author’s consent). non-gallery ,”transitional” and public festivals, galleries and similar showrooms. spaces, independent organizations,

128 art colonies, festivals and events, art distribution of dividends is taxed more taxpayers to the deduct from their tax former term practicioner in the culture), market, collections, and critical thinking lenient in order to eliminate or reduce obligation value added taxes that they conditioned by multiplied activities, of articulated in the media and through the negative effects of double taxation. have paid to their suppliers. various, often entrepreneurial and manual theoretical practice. character, which in terms of production Tax rate - Application of the tax rate Visual Arts - though there are a number in Serbia, often carries a distinctive class Tax Competitiveness - The tax determines the tax amount in respect of definitions, this term is defined in consciousness characteristic for the competitiveness presents a situation of the whole or partial tax base. the text according to the current social underpaid work and exploitation. in which, due to a lower effective tax contract, contextual specificity, cultural burden, investors prefer investing Trade value of a work of art - an economic rules, sensory experience in terms of and doing business in one state over category, which means the value of work of the network of discursive meanings, another with the higher effective tax art in the market exchange. Often referred and art frames in which it dwells. burden. State actions attracting capital to as the market value of the artwork. Accordingly this phrase encompasses a and business low effective taxation is broader term covering all types of visual called tax competition. Under production - deficit in the field of expression: from classical (paintings, cultural production in relation to the primary sculptures, drawings, prints ...) to Tax on profit - is the tax payable on the production and organizational standards, new (installation, ambient installation, profit made by legal persons matched thoughtfulness and level of development of video, photography, technology and to special tax rules. Profit of a legal art projects and consequently the quality the screen arts), and wide range of entity shall be allocated to the owners of visual art programs in general. applied arts (design, graphic design, of the entity only after completion of architecture, comics, illustration, set taxation at the level of the legal entity Utility value of a work of art - a work of design, costume design), and how which can lead to double economic art’s ability to meet different aesthetic this kind of sharp categorization is taxation. Depending on whether this needs, to aesthetically act and cause surpassed in the modern world, and form of taxation has an impact on the an aesthetic experience. even completely deleted, it is necessary taxation of dividends, that is whether to understand and comprehend it reduces or eliminates the double Value Added Tax - most commonly contemporary interdisciplinary art taxation of the economic dividend, all defined as non-cumulative all-phase- tendencies. systems of taxation on corporate profit net sales tax, or all-phase-net sales tax. can be divided into: (1) Classical - paying Effects of cumulative taxes in several Worker in the culture - changed position income taxes is irrelevant for taxation phases (manufacture, wholesale, retail) of participants at the contemporary art of dividends; and (2) Integrationist - are eliminated giving a right to VAT scene introduced this term (instead of the

129