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Live Classical Music Organizations in Europe an International Comparison of Funding Trends, Governance Mechanisms and Organizational Structures by Marcello M Mariani

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Live Classical Music Organizations in Europe an International Comparison of Funding Trends, Governance Mechanisms and Organizational Structures by Marcello M Mariani Live classical music organizations in Europe An international comparison of funding trends, governance mechanisms and organizational structures by Marcello M Mariani 1 “To Francesco, Antonia and Giorgio” Live classical music organizations in Europe: An international comparison of funding trends, governance mechanisms and organizational structures by Marcello M Mariani Cultural Policy Research Award (CPRA) Granted by the European Cultural Foundation & Riksbankens Jubileumsfond CPRA edition 2006 Research completed in June 2009 isbn/ean 978-90-6282-050-4 3 Contents Foreword 6 Key messages 7 1.Introduction 12 2. Theoretical background 16 2.1 Comparative cultural policy research in Europe 17 2.1.1 The Council of Europe and cultural policy research 2.1.2 The Compendium of cultural policies and trends in Europe 2.1.3 Financing the Arts and Culture in the EU 2.1.4 Other contributions 2.2 Public and cultural policies in the performing arts 19 2.2.1 Economics of the performing arts and the ‘Baumol disease’ 2.2.2 Other studies on the performing arts 2.2.3 Classical music as a ‘merit good’ 2.3 New public management in the cultural sector 22 3. Empirical setting, data and methodology 24 3.1 Defining live classical music organizations 25 3.2 The selected countries 26 3.2.1 Comparative public spending on culture 3.3 Data and methodology 29 3.3.1 Stages of the research 3.3.2 Methodological notes 3.4 The reconstruction of public funding and financial trends 32 4. Cross-country comparative results and discussion 34 4.1 Cultural policies and public funding rationale 35 4.1.1 Classical music as a ‘merit good’ 4.1.2 Decentralization and regionalization processes 4.1.3 A return to local origins, but... 4.2 Funding trends 39 4.2.1 Practical difficulties 4.2.2 The estimated funding picture 4 4.3 Financial structures 42 4.3.1 Evolution of income 4.4 Legal status and governance mechanisms 46 4.5 Organizational structures and industrial dynamics 47 5. Reflections, recommendations and research agenda 50 5.1 Recommendations 54 5.2 What future? 54 5.3 Research agenda 55 Acknowledgements 57 Annexe 1 – Questionnaire for managers 59 Annexe 2 – List of topics dealt with in interviews 66 Annexe 3 – Live classical music organizations in the six selected countries 67 Annexe 4 - List of secondary data and documents collected by country 72 Bibliography 77 List of Jury members 88 Biography 90 Figures and tables Figure 2.1 Type of music listened to by Europeans (as a percentage of the population listening to music) 22 Figure 3.1 Average annual public spending on culture as percentage of GDP (2000-2005) 28 Figure 3.2 Percentages of public expenditure for culture by level of government (2000-2005) 29 Table 3.1 Organization of the public administration responsible for culture in the six countries 26 Table 3.2 Data collected in order to reconstruct public funding and financial structure trends 33 Table 4.1 State and/or public expenditure for culture and the performing arts 40 Table 4.2 Income structures for selected samples of LCMOs 42 Table 4.3 Breakdown of income for selected samples of LCMOs (last available year) 43 Table 4.4 Expense structures for selected samples of LCMOs 45 Table 4.5 Breakdown of expenses for selected samples of LCMOs (last available year) 46 5 Foreword The Cultural Policy Research Award (CPRA) was created to encourage much needed research in the cultural policy field, support a younger generation of cultural policy interested professionals, and develop a network of scholars to engage in European research cooperation. Launched as a joint venture of the European Cultural Foundation (ECF) in Amsterdam and the Riksbankens Jubileumsfond, a research foundation in Stockholm, the CPRA was conceived to make a meaningful contribution to the discipline of cultural policy research. The two foundations have worked closely to shape this initiative, supported by the expertise of a European jury of researchers and policy experts. Both foundations felt strongly the need to strengthen the base of qualified people to carry out research not only in the arts but on cross-cultural matters and with a strong cultural policy dimension. Hence, the CPRA encourages research that has an applied and comparative dimension in order to stimulate debate and inform cultural policy-making within a European perspective. Based on an annual European-wide competition, the CPRA jury selects a cultural policy research proposal to be carried out by the award-winning candidate within one year. The selection is based on the candidate’s previous research accomplishments, on the relevance and quality of the research proposal, as well as their curriculum vitae. The target group is young researchers, scholars, or policy-makers (under the age of 35) from all European countries. Candidates must be educated to MA level in social sciences, art and humanities, or public policy research. The selected applicant is awarded the prize and a grant of Euro 10.000 at the occasion of an international cultural policy related conference. In 2006, the CPRA went to Marcello M. Mariani, Assistant Professor at the Department of Management at the University of Bologna. His research project Live classical music organizations (LCMOs) in Europe: an international comparison of funding trends, corporate governance and organizational structures proved particularly difficult in the environment where little comparative data is available, and competition is high. The research is based on an analysis of facts and figures but also on numerous interviews with professionals from the field of live classical music, as well as cultural policy-makers, public funding bodies, trade unions, and academics. The research, from its earliest stage to its final report, proved to be a very intense and challenging exercise. By outlining interesting trends and facts it has deepened our knowledge of live classical music organizations in six EU countries (France, Italy, Germany, Poland, Sweden and the United Kingdom). In trying to formulate key findings and recommendations it could facilitate informed policy decisions in this sector. Marcello Mariani managed to assess correlations between public and private funding and productivity of LCMOs, in the context of their intrinsic ‘income gap’ feature. He highlights the diversification of ownership, shifts in governance (national-local-private) that affect the market and also the competition in the sector. He also proposes concrete recommendations for overcoming the existing gaps and challenges in studying financial and managerial aspects in LCMOs in Europe. We wish to thank the CPRA Jury, chaired by Prof. Dr. Milena Dragicevic-Sesic (University of Arts - Belgrade), for its huge and continued investment in the initiative without which this cultural policy research endeavour would not have been possible. We are also grateful to the CPRA text-editor, Janet Hadley, for working so thoroughly on the completed research paper, and so closely with the ECF. Last not least, we wish to thank the Riksbankens Jubileumsfond for partnering ECF in this initiative which supports and invests in young talent in cultural policy research. Isabelle Schwarz Head of Cultural Policy Development, European Cultural Foundation 6 Key messages Live classical music organisations in Europe: An international comparison This study is a preliminary comparative analysis of cultural policy towards the European classical music sector with an in-depth economic perspective rooted in empirical research. The research describes funding and financial trends, governance mechanisms and organizational structures of more than 150 publicly subsidized classical music institutions – ie live classical music organizations (LCMOs) – operating in six European countries (Italy, France, Germany, Poland, Sweden, UK) over the last ten years. The trends and statistics are analyzed not only by looking at the actual structures, but also by researching the perceptions and viewpoints of relevant experts and professionals in the sector. The study: • offers a methodological reflection on the use, abuse, misuse of cultural statistics and financial data of individual classical music institutions • describes several features of the circumstances of classical music organizations in selected countries with a focus on the current cultural policy debate and a particular emphasis on o the reallocation of public funding responsibilities for classical music between different levels of governments o the processes of désétatisation – a shift from state monopoly over organizations towards diversified ownership and changing their legal status to private organisations, foundations or associations – and the impact of the aforementioned processes on governance mechanisms o the emergence of several interesting organizational structures/phenomena • reconstructs and compares crucial economic trends through statistics and quantitative data for relevant samples of publicly subsidized classical music organizations. The analysis tries to bridge a gap in the existing research, but also to give a comparative perspective to our knowledge of the classical music sector. This seems crucial if we consider that several of the recent transformations triggered by decisions about cultural policy in the classical music sector, such as the privatization of the Italian enti lirici – the major operatic institutions in Italy – that has taken place since 1999 have not been guided by a proper knowledge of the sector and as a consequence have often generated unexpected and perverse outcomes such as what
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