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2014 ma am econo

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Rene KOOYMAN
Rene KOOYMAN

This document discusses the intersection of art, economics, and cultural policy. It covers several key topics: 1. It defines cultural economics as the application of economic analysis to creative and performing arts, both public and private. 2. It explains different views of capitalism and how economies have evolved from an industrial focus to a knowledge and innovation focus. 3. It outlines Pierre Bourdieu's theory of cultural capital and how social class is stratified based on economic and cultural resources. 4. It discusses different economic philosophies like liberalism, social liberalism, and monetarism and their approaches to the role of markets, the state, and cultural policy.

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Introduction Art and Economics University of the Arts Rene Kooyman Jan 2014
Economics Cultural and Creative Economy The holy Trinity; the Arts, the State and the Market Case study
Cultural economy Cultural economics is the application of economical analyses within all fields of creative and performing arts; both public and private Creatives often allergic to economical analyses; banks allergic to creative thinking Q: what is Capitalism ?? Economy is a social, behavioural science
Capitalism NL: Trade capitalists Transport/mobility VCO: NV (Joint-stock company) Vocational SMEs: Master / pupil structure Division of labor Capitalism: economic system, based on: 1. Private ownership of capital goods and raw materials 2. Profit-driven; demand/supply, competition Production factors: a. Capital investments b. Natural resources c. Labour
Europe in crisis ?? Social developments: Urbanisation From industrial production to knowledge Growth falters; is absent Small and medium-sized enterprises (SMEs) of strategic value The economic power of the cultural and creative industry (work CCIs) ' Old School ' is no longer valid: innovation
The cultural and creative industries The ' culture industries ' are those industries, considered as a specific cultural expressions, regardless of their commercial value. E.g.: film, DVD and video, television and radio, video games, new media, music, books and press, performing arts, visual arts. ' Creative industries ' are those industries that use culture as input, but whose results is above all functional, E.g.: architecture, advertising and design and fashion.
Cultural inequalities High and low culture; real art / popular culture professional and amateur art Cultural dimensions: Local and global culture Cultural, Social & Economic Capital: Economic capital: command over economic resources (cash, assets) Social capital: resources based on group membership, relationships, networks Cultural capital: forms of knowledge; skill; education; any advantages a person has which give them a higher status in society, including high expectations
19-12-2014 8 Pierre Bourdieu: Existence of Social class is a basic social fact We live in a high stratified class society continuously, based on economic capital and cultural capital The society tries to keep the upper class powerful and the lower classes powerless Much happens unintentionally; no conscious manipulation by the powerful CLASS, LIFESTYLE AND POWER
19-12-2014 9 Cultural Capital Economic Capital Cultural bourgeoisie High Intermediate e.g. artists, academics Business bourgeoisie Intermediate High e.g. company directors Upper professionals Intermediate to high Intermediate to high e.g. lawyers, higher civil servants Lower middle class Intermediate to low Intermediate to low e.g. primary school teachers, nurses Working class Skilled Low to intermediate Low to intermediate Unskilled Low Low
Aalborg School: ' learning economy ' culture as open secret (Bengt-ke Lundvall, et al.) National innovation systems Culture defines the ' open secret , ' concealed knowledge ', cannot be ' transported ' , nor outsourced, specific knowledge linked to source and location Culture as a source of competitive advantage (Michael Porter, et al.) Globalization: makes displacement production possible Cultural economy : hard to imitate competitive advantage (a niche market) Cultural differences deliver distinctive products and services (international specialization) Culture in contemporary economical theory
Liberalisme: Adam Smith Production should be done by individual entrepreneurs, within maximal freedom The invisible hand: price mechanisms, supply and demand arrange the fine-tuning of production and societal needs The State as much limited as possible: 1. National defence 2. Legal justice 3. Collective investments of relevance for the economy where no profit can be made (roads, bridges, infrastructure, etc)
Social-liberalisme: Keynes Fiscal policy (government taxing and spending) can be used to control the economy Government can stimulate demand by increasing governmental spending Stimulate employment by public investments (public projects, improvement of spending power, labour hours regulations) Society should be built up form the grass-roots; corprorate structures, subsidiarity-principle Short-term strategies are important
Monetarisme: Milton Friedman Its all about the money, stupid! Regulate the growth of money Always fight inflation Central banks rule! Growth is defined by the amount of money available Thatcher/Reagen: liberalisation of financial markets, stimulate borrowing
The holy Trinity Arts Markets The nation state
Why are artists poor? Vocation: willingness to accept low income At the same time mental support of society Distinction: high/low art No link quality/price? Aesthetic value = social value Government encourages experts' = interference in the market Ideology: Artist = unselfish
Five explanations 1. Personal gratification, recognition and status more important than money 2. Artists poorly informed about incomes needed 3. Grants deliver more Artists, no higher income 4. Artists rely on other sources of income 5. Cuts in labor (higher productivity) not taken place in the arts 6. Myth of the individualistic Artist prevents organized pressure groups (trade unions)
Two cases Utrecht Centraal Museum Het Huis Utrecht The assignment: develop a management statement for the upcoming four years
Thats the way its done! Rene Kooyman Jan 2014 http://cci.hku.nl/ http://cure-web.eu rene.kooyman@ke.hku.nl Introduction Art and Economics

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2014 ma am econo

  • 1. Introduction Art and Economics University of the Arts Rene Kooyman Jan 2014
  • 2. Economics Cultural and Creative Economy The holy Trinity; the Arts, the State and the Market Case study
  • 3. Cultural economy Cultural economics is the application of economical analyses within all fields of creative and performing arts; both public and private Creatives often allergic to economical analyses; banks allergic to creative thinking Q: what is Capitalism ?? Economy is a social, behavioural science
  • 4. Capitalism NL: Trade capitalists Transport/mobility VCO: NV (Joint-stock company) Vocational SMEs: Master / pupil structure Division of labor Capitalism: economic system, based on: 1. Private ownership of capital goods and raw materials 2. Profit-driven; demand/supply, competition Production factors: a. Capital investments b. Natural resources c. Labour
  • 5. Europe in crisis ?? Social developments: Urbanisation From industrial production to knowledge Growth falters; is absent Small and medium-sized enterprises (SMEs) of strategic value The economic power of the cultural and creative industry (work CCIs) ' Old School ' is no longer valid: innovation
  • 6. The cultural and creative industries The ' culture industries ' are those industries, considered as a specific cultural expressions, regardless of their commercial value. E.g.: film, DVD and video, television and radio, video games, new media, music, books and press, performing arts, visual arts. ' Creative industries ' are those industries that use culture as input, but whose results is above all functional, E.g.: architecture, advertising and design and fashion.
  • 7. Cultural inequalities High and low culture; real art / popular culture professional and amateur art Cultural dimensions: Local and global culture Cultural, Social & Economic Capital: Economic capital: command over economic resources (cash, assets) Social capital: resources based on group membership, relationships, networks Cultural capital: forms of knowledge; skill; education; any advantages a person has which give them a higher status in society, including high expectations
  • 8. 19-12-2014 8 Pierre Bourdieu: Existence of Social class is a basic social fact We live in a high stratified class society continuously, based on economic capital and cultural capital The society tries to keep the upper class powerful and the lower classes powerless Much happens unintentionally; no conscious manipulation by the powerful CLASS, LIFESTYLE AND POWER
  • 9. 19-12-2014 9 Cultural Capital Economic Capital Cultural bourgeoisie High Intermediate e.g. artists, academics Business bourgeoisie Intermediate High e.g. company directors Upper professionals Intermediate to high Intermediate to high e.g. lawyers, higher civil servants Lower middle class Intermediate to low Intermediate to low e.g. primary school teachers, nurses Working class Skilled Low to intermediate Low to intermediate Unskilled Low Low
  • 10. Aalborg School: ' learning economy ' culture as open secret (Bengt-ke Lundvall, et al.) National innovation systems Culture defines the ' open secret , ' concealed knowledge ', cannot be ' transported ' , nor outsourced, specific knowledge linked to source and location Culture as a source of competitive advantage (Michael Porter, et al.) Globalization: makes displacement production possible Cultural economy : hard to imitate competitive advantage (a niche market) Cultural differences deliver distinctive products and services (international specialization) Culture in contemporary economical theory
  • 11. Liberalisme: Adam Smith Production should be done by individual entrepreneurs, within maximal freedom The invisible hand: price mechanisms, supply and demand arrange the fine-tuning of production and societal needs The State as much limited as possible: 1. National defence 2. Legal justice 3. Collective investments of relevance for the economy where no profit can be made (roads, bridges, infrastructure, etc)
  • 12. Social-liberalisme: Keynes Fiscal policy (government taxing and spending) can be used to control the economy Government can stimulate demand by increasing governmental spending Stimulate employment by public investments (public projects, improvement of spending power, labour hours regulations) Society should be built up form the grass-roots; corprorate structures, subsidiarity-principle Short-term strategies are important
  • 13. Monetarisme: Milton Friedman Its all about the money, stupid! Regulate the growth of money Always fight inflation Central banks rule! Growth is defined by the amount of money available Thatcher/Reagen: liberalisation of financial markets, stimulate borrowing
  • 15. Why are artists poor? Vocation: willingness to accept low income At the same time mental support of society Distinction: high/low art No link quality/price? Aesthetic value = social value Government encourages experts' = interference in the market Ideology: Artist = unselfish
  • 16. Five explanations 1. Personal gratification, recognition and status more important than money 2. Artists poorly informed about incomes needed 3. Grants deliver more Artists, no higher income 4. Artists rely on other sources of income 5. Cuts in labor (higher productivity) not taken place in the arts 6. Myth of the individualistic Artist prevents organized pressure groups (trade unions)
  • 17. Two cases Utrecht Centraal Museum Het Huis Utrecht The assignment: develop a management statement for the upcoming four years
  • 18. Thats the way its done! Rene Kooyman Jan 2014 http://cci.hku.nl/ http://cure-web.eu rene.kooyman@ke.hku.nl Introduction Art and Economics
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