Appendix 6 - International Music Council

Government provides a subsidy currently covering 20% of the expenditures to help the
fund (ericarts, p.21).
Recent Re-Allocation of Public Responsibilities
Contributions by the citizens and their local communities are encouraged. Over the past
years, the Federal Government, the federal states and the municipalities have increasingly
handed over direct responsibility for running cultural facilities and programs. This
organisational restructuring of the cultural sector is favoured by representatives of the
business sector and other groups in society, provided it does not result in reduction of the
state's financing. Institutional reforms now reflect a growing preference for new
sponsorship models. Two strategies can be distinguished in this context: the partial
liberation of cultural institutions from the confines of budgetary and public service law and
from municipal and other administrative structures through choice of another legal form
such as a limited liability company or a foundation and the transfer of tasks to institutions
in civil society. (ericArts, p. 33)
Problems of Statistics
The municipalities, the Federal States and the Federal Government operate on the basis of
different definitions of the term "culture". As a result, public cultural expenditure statistics
often vary considerably. EU cultural statistics with yet differing definitions and the very
broad UNESCO statistical framework add to these various definitions of cultural statistics.
Furthermore, other state activities, for instance measures for job promotion affect the
cultural sector, but are rarely included in the statistics for culture.
Overall development of funds
Cultural expenditure increased disproportionately in comparison to other areas of public
expenditure in the 1970s and 1980s. In the 1990s , however, leaving the effects of
unification aside public expenditure declined (Ericarts Germany p.30).
EXAMPLE 4: LITHUANIA
Promotion of creativity, i.e. of artists, has been an inportant policy issue. In the 1990s, a
system of state support for artists (scholarships, grants, awards, etc.) was established along
with other forms of financial and social aid. The Culture and Sports Support Fund
(established in 1998) is one example of such a measure. Furthermore, a legal basis is being
developed to address the status of artists (ERICarts).
4. Lithuania has special regulations concerning social security for artists (e.g. payment of
state pensions) and a tax exemption from personal income tax.
5. Financing of third sector (non-governmental instituion) comes from a variety of
sources. State funding is generally allocated upon expert evaluation of candidate
projects or programs submitted for competition.
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