Cultural industries – five years later, two years too late

Serbia is a little Balkan country with approximate 7 million inhabitants. After a decade of isolation, sanctions, wars and country separation, Serbia is trying to find its way into European integration. Unfortunately, devastated economic system is suffering from deep wounds when moral principles and forms of population behavior are concerned, which is postponing the integration process further in future and threatening to isolate Serbia even more. After Prime Minister Dindic´s assassination in 2003, politicians´ efforts speak in favor of this assertion. After three years of Dindic´s democratic control that made significant change from Milosevic´s state regime, now it seems as if that change was too big, and the same old system needs to be reconstructed again. Unfortunately present government that doesn´t have people´s support (last presidential and local elections showed their total defeat) continues its destructive policy and dismisses the success of democratic rule. Apart from economy, it seems that this destructiveness is the most visible in culture. Although the conference «Cultural policy and cultural production in Serbia» that was held in November 24th – :25th 2000. in Belgrade and gathered almost every significant person related to culture in Serbia, determined the course of cultural politics development and initiated ideas for improving Serbian cultural industries – unfortunately reversed process happened. In 2004 new government divided ministries and responsibilities by vertical principle and the Ministry of culture and media got under the control of Vuk Draskovic´s up to recently nationalists. Although visible, European turnover in their politics isn´t followed by human recourses that are capable of carrying out this process. This is how this ministry became one of the worst in already failed government. One of the recommendations of the conference was development and use of legal, tax and economic systems that are related to culture and cultural industries. It was underlined that application of existing laws and their amendments is necessary, as well as passing new regulations based on broad public debate. Unfortunately, nearly five years after this event we have the following situation. Legal system that should be the basic condition for application of new cultural policy and initiator of cultural industries development, has a destimulative role. Law on theatre isn´t passed; law on broadcasting isn´t being applied (even though it was passed in 2003. and there were many objections to its quality) because government did not delegate its representatives in the Council that manages the work of Broadcasting Agency and applies the law. Tax laws and tax deductions related to culture did not find place in new restrictive laws passed by Ministry of finance. At the contrary, things went further in the wrong direction. By imposing the tax on added value, cultural goods (for example – books) are being taxed as if they are alcohol beverages or cigarettes. Prior to releasing a audio or video publication as a product on the market, a producer must to pay this tax first. In this way big companies that are mostly involved in commercial projects and managed by commercial logic are enabled to rule on the Serbian media and cultural scene. Small distribution companies or independent producers that are frequently behind the projects of high artistic value don´t have the possibilities nor the economic support to meet the conditions that are imposed by the law. At the time, conference was also underlining the importance of defining the model of cultural policy which would create the conditions for developing the necessary strategies aiming at including our culture into regional, European and global integrations. It was determined that the new model of cultural policy must be founded on the characteristics of para – state model which is, in its contemporary version leaning on the combination of state financing, market mechanisms and foundations. Even then state model wasn´t applicable because it wasn´t supported from the budget; today even less. Experience of surrounding countries and global trends were warning us that liberal model could lead us to commercialization where the commercial logic would prevail and enable the development of those cultural contents that would decrease the level of our culture and lead to complete cessation of cultural life in some segments. Among of the objections of the conference and new cultural policy were to stimulate the international cooperation by entering the international associations; include cultural industries in special credits programs and reaffirm the cultural importance of the region at the territory of Serbia and south-east Europe. Unfortunately, new Ministry of culture did not do anything to achieve this goal. Fortunately, some managing structures in country´s culture, as for example the Belgrade City Culture Secretariat which can easily be compared to Ministry of culture by its strength and budgets, worked directly on carrying out the planned objectives. The thing that made impossible for this body to be even more successful is the lack of necessary laws or the restrictiveness of the existing regulation.

Cultural institutions – reasons for existence

Cultural institutions were identified as one of the biggest problems in applying the new model of cultural policy. Faced to long – lasting crisis, they are lead to the edge of existence. The biggest part of human recourses left, young professionals didn´t come. Budgets diminished from year to year, equipment wasn´t renewed and there were few investments in new programs. Altogether it resulted in the misunderstanding of the cultural role that institutions ought to play on the local, regional or national level. In favor of that speaks the last catastrophy with Museum of Yugoslavian History (March 2005). It is important to mention that this is the institution of the Republic and that is placed in the same building as Ministry of culture. With the strong intention to make the Museum activities visible and attractive to the public, the representative exhibition of Tito´s watches was organized and called «Moving image of time». Collection consisted of over 150 most valuable exhibits, mostly gifts that were offered to Tito by the other statesmen during his life. Mostly there were unique hand made objects of the most expensive brands of watches in the world. Average value of just one object is between 200.000 to 1 million euros and cultural and historical value is immeasurable. Among those objects were gifts from American president Lyndon Johnson from 1968, Russian president Leonid Brezhnev and Austrian president Franc Jonas. Among the clocks there was the tabernacle clock “Julienne le Roy” from XVII century made by craftsman Amoretti who was the personal watchmaker for Louis XV. Exhibition didn't attract the attention of the public, but the experts were intrigued. And something that couldn't be imagined in the past happened. Theft in a Serbian museum. Although few years ago, we witnessed almost a movie action in which a deranged young man, obviously inspired by some film, cut Rembrandt from the frame and carried it away folded under his jacket, until recently those phenomena were considered almost impossible. It is sad that those excesses direct attention to our cultural and historical treasures that stand unprotected in the exhibitions or in even worse case ndash; rot in inadequate depots. Last excess showed us one more thing. Exhibition was protected by one retired and unarmed guard who was easily defeated; exhibition didn´t have any means of security measures, bulletproof glass, surveillance cameras, silent alarms, etc. And the most important fact is that it wasn´t insured. The reason for that is very simple. Ministry of culture didn´t have those items covered in its budget. Although the minister of culture showed up at the premises the same evening, no efforts were good enough to wash off the stain of incompetence of the present leadership. So, although we have some good points in Serbian cultural life, general politics that should be guided by republican Ministry of culture is lacking. The Treaty of Maastricht from 1992 for the first time formally recognized the cultural dimension of European integration, European Union used various programs to support European cultural diversity and develop European cultural industries. In view of the fact that they employ around seven million people, European cultural industries are now considered as important economic factor and EU tries to insure the conditions for greater competitive ability of that sector at the international level. European social and regional founds annually spend approximate 500 million euros on projects that have cultural dimension. In a country that is on the edge of European cultural action and far from this kind of financial supports in cultures it is not unfounded to be deeply worried for the survival of cultural diversity of every single region. Cultural industries include a vast range of different activities, from publishing, cinematography, music, television to certain craftwork products and design, and they are directly connected to the issue of preserving the cultural diversity. Many organizations in the world, as UNESCO or Council of Europe issued declarations on respecting the cultural diversity. However, backed with huge budgets cultural industries of the developed western part of the world greedily colonize every cultural niche in transitional countries. For example cultural center Les Halles de Schaerbeek in Brussels has annual budget of 2 million euros, plus 1,2 million in support from European founds. Whole theatre production of 11 professional theatres and ten amateur scenes in Belgrade doesn´t surmount this sum.

Television – smooth neocolonialism

Audiovisual industry products are certainly among the most vulnerable products of cultural industry in terms of preservation of cultural diversity. Well secured in their home market those products are cheaply given to the other markets thus diminishing the value of domestic production. Although in the last few years the need for American soap opera shifted to Latin telenovelas, we are still dealing with unfair game. While one episode of soap opera or telenovela can be bought at the price range of 100 to 1000 dollars, the production of one episode of the domestic feature series costs at least 100.000 dollars. At the time, author of this text as a co – author of Serbian Broadcasting Law pleaded for the mix of protectionist and encouragement measures in domestic production of audiovisual industry. Although attacked because of these opinions he stayed by the argument that further liberalization of the audiovisual market contributes to further colonization. Government didn´t recognize the fact that investment in audiovisual industry is very profitable business that can open new jobs, employ existing and activate new capacities and especially strengthen domestic cultural inheritance and guard its specifics. We are witnessing that today the process of network connecting in audiovisual industry is guided by the logics of profit. Kitch and schund as unavoidable parts of this process become the dominant cultural model in Serbia and in the region as well. The leader of this process is the predominant Pink television. Although its program is populistically oriented towards cheap folk music, Latin soap operas and American films, after it conquered the Serbian market, this television is successfully finding its way to the markets of the surrounding countries in the region. Surely, using satellite signal it covered Serbian diasporas in the world, which made this television the mastodont of audiovisual industry in Serbia. There is a certain parallel between television and music industry, and one could say even the publishing in Serbia. It is obvious that we are the last country in the region that was left out of foreign investments in these areas. Is it a question of fear of uncertain investment or the size of the market, still Serbia doesn't have any foreign TV companies, foreign record labels nor big publishers. Of course that the answer partly lies in the fact that the country was closed during Milosevic´s regime, but that didn´t stop Italian and Greek companies to invest in mobile telephony. However, maybe there is something good about this. It has been a while since the foreign capital entered the audiovisual industries of transitional countries, but during this period Serbia stayed as tera incognita. Example for that is Mr. Ronald Lauder (owner of the cosmetics company Ester Lauder) who´s company Central European Media Enterprises (CME) founded TV Nova (Tcheck Republic), first commercial television in post communist countries, which is in fact one of the leading CME stations that has annual commercial revenue that overcomes the sum of 100 million dolars. CME also launched new stations: in Slovakia TV Markiza; in Romania Pro TV; in Slovenia Pop TV, and recently TV Nova in Croatia. Besides CME, there is CLT-Ufa from Luxembourg that owns dozens of private television channels in Central and Eastern Europe, as well as the share in the capital of the same number of stations. Truth to say, in Serbia one station was sold (TV Kosava) to German Channel 1, that is, Kirsh group. Previously owned my Milosevic´s daughter and founded by compulsory donations, this station was sold to German giant overnight. Although at the time the minister of telecommunications who is now the president, Boris Tadic expressed his discontent for breaking of the law that didn´t allow the selling of the frequency with the selling of the station, German company continued to broadcast, showing once again that the democratic principles are valid only in and for western countries. Nowadays this television is a leader in soft porno television content in Serbia. It is almost impossible to determine the number of television stations in Serbia. According to Federal Bureau of Statistics there are 71, but according to some agencies that number reaches 200. That would seem like a perfect picture of developed audiovisual industry if we haven't known the following. Noted stations that I at the time characterized as kiosk televisions don´t stand any argument to be representatives of any kind of industry. In fact, there is no reason for their existence. Those are the stations that haven´t the adequate working space; they are using amateur equipment; they are involved in piracy and they employ the work force that has no qualifications whatsoever. Their signals interfere with each other and with the other stations in the region, airing its worthless program and thus making a sad main stream in Serbian culture today. This is mostly turbo folk culture which side effects are: destroying the traditional social values; establishing the logics of profit as well as the domination of silicon and western brands. In Serbia there are about 50 public media that are mostly founded by local authorities. Those are local newspapers, radio and television. Extensive research on the sample of 10 television and 10 radio stations that was done by the students of the Faculty of Dramatic Arts guided by their professors in May of 2004, lead up to the conclusion that there are no justified reasons for the existence of these media. Too influenced by the local authorities, completely dependent on the budget and consumed with their organizational problems, they don't represent the media leaders in their own community nor do they meet the public needs and expectations of objective information. Law on privatization of public enterprises requires that all public companies must be sold until April 2005 even more complicates their already difficult position. Minister of culture and media postponed this deadline for media companies until September 2005. His message to the media employees was for them to take commercial credits and buy media in order to become their own masters, with the idea that the media can not be sold to “suspicious people with suspicious capital!” It is too much even from the mouth of one minister!

Status of artists – mission impossible

Cultural production is not possible without the participation of artists. One can not consider the issue of cultural industries development without considering the issue of artists role in it. It seems that the status of artists in Serbia today is more difficult than ever. Government social programs and announcements of new law that will increase social insecurity of artists´ status even more don´t look promising. Mentioned tax regulations additionally complicate already difficult status of the artists. Artists´ position isn't endangered only at the level of economy. General relation between society, politics and politicians towards artists and artistic production speaks a great deal about difficult situation in Serbia. Most recent example (March 2005) happened in Nis (third city in Serbia in terms of size and population), where local authorities driven by interests of one political party arrange cultural politics according to its clan interests regardless of the existing budget plans. So, we have a situation where a theatre play by the famous author Stevan Koprivica „We are expecting a baby” of National theatre in Nis, with top quality cast in Serbia, can't open because the city didn´t pay the costs that were already planned by the budget. Although the reason for such conduct lies obviously in political bias, their explanation that city can´t give the money for the plays that could flunk seems almost insolent!!! When theatre went public with the problem city authorities stopped financing it at all. Putting up with this kind of cultural politics seems almost as a mission impossible. However, typically for Serbs and their spiteful nature, the opening night happened. Actor from Nis Dejan Cicmilovic read the announcement of the Union of Drama Artists, in which it says “that the theatre will continue to live, even under working lights and in the rehearsal sets”. And exactly that happened. On the day when 118 years ago first play “Serbian haiduks” took place – 12.03.2005. there was the opening night of the play „We are expecting a baby“. Actors played without sets, in private costumes, carrying improvised personal props, instead of those that were planned by the direction of the play. However, the audience wasn´t upset because of that and they gave a big applause at the beginning and at the end of the play which promises a success! One of the promises of the authorities was the regulation of copyright rights. Although Yugoslavia had these laws at the time as well as Serbia have them today, very little have been done to secure their application. It has become almost pointless to talk about the protection of copyright rights in the situation where piracy flourishes everywhere and especially in the field of music, films and publishing – pirate copies can be easily bought everywhere. Although police from time to time carry out the raids and confiscates millions of pirate discs, for the last five years in Serbia only one person is convicted for this kind of crime.

And after all – culture

After Second World War Serbia had its ups and downs in the field of cultural industry. By using the state model of cultural policy the intention was in the first place to increase the level of literacy as well as to improve general cultural level of the nation. It is evident that Serbia had more libraries, cultural and educational associations fifty years ago. Today, however, books are read more although there is smaller number of libraries, there are more theatres, more radio and television stations. More newspapers are printed. Ten thousand books are published annually. Over one thousand foreign books are translated to the languages of the nations that live in Serbia. When you compare that to the figure of 330 books that are annually translated to Arab language for the population of 280 million people (London Al Hayat), it is more than obvious that Serbia succeeded in staying in contact with the developed world and even to impose some of its cultural products. You can not find a film fan who didn´t heard about Kustirica, or listened to Goran Bregovic´s music, or enjoyed the literary enthusiasm of Pavic´s Khazars Dictionary. When personal creative potential is in question one could say that it is natural born on the Balkan territory. We have never lacked in individuals and artists of high quality. However, the issue of cultural industries is primarily an economic issue. Today cultural industries are becoming a very important branch of the economy. Cultural products can not be considered as ordinary goods. Cultural product is very vulnerable and that is why the serious concern of the state is necessary. Primarily in development of cultural productions, regulation and protection of artists, educational level of the employees of the cultural institutions, redefining cultural politics, its objectives and means of application. Issue of cultural industries is a political issue as well. At last cultural industry demands such cultural policy which can guarantee development and preservation of cultural diversity aiming to improve the living quality of citizens. Objectives of European cultural policy are directed towards improving the knowledge and popularization of culture and history of European nations. Creating a European cultural territory, preservation and protection of cultural heritage of importance for Europe, noncommercial cultural exchange and artistic and literary creation, including the audiovisual sector. Objectives of our cultural policy as well correspond to European, but at the present they must be more focused on the reconstruction and revitalization of cultural infrastructure, protection of cultural identity and diversity through development of cultural industries, improving the status of the artists and the conditions for artistic and cultural creation. Redefining the position and the role of public cultural institutions is possible through intensive investment in the process of lifetime education and training the employees in those institutions to take over the burden of efficient and effective management of cultural institutions. Efficient in the sense of decreasing the costs and further financial independence. Effective in the sense of increasing the quality of service, identified in broader opening to the public and closer cooperation with local community, whether that are media, advertisers or financiers. Only after strengthening these institutions it is possible to think about transformation of owners and entering of private capital. Prior condition for creating successful cultural industries is issuing a stimulation fiscal and tax regulation (protection of domestic cultural industry, film, music, literature, etc.). Application of law on copyright and neighboring rights should be the prerequisite that must be guided by republic government. Finally, society that grants to artists privileged status is a society of prosperity. In the present phase it is the most important to secure the programs of social and pension protection for the artists. This is a minimum that every country should provide for. By fulfilling these conditions Serbia would have the chance to establish the cultural policy suitable to new social and political situation and to regulate and strengthen the existing cultural industries. By doing that it would keep a leader position in Balkan region. It seems that cultural industries require serious prerequisites. Not long before his death Serbian prime minister Zoran Djindic gave a prophetic statement in one platform «Mine and yours Serbia will meet in the future». Unfortunately future is postponed, but for a short time. I am sincerely hoping that my vision of Serbia will meet with Djindic´s vision of Serbia. Progressive, European Serbia with clear and prosperous cultural policy and powerful and fertile culture industry. Balkanika wasn´t made with the idea of leadership in the Balkans. At the contrary, understanding the peninsula territory as a unique cultural entity with similar historic backgrounds, famous composer Sanja Ilic, after considerable success in pop music, creative excursions to theatre, decides to dress the Balkan musical heritage into new clothes of techno music and offer it to the world. I deliberately say to the world because Balkanika had first became famous in the world and then it came home. In the beginning of February Balkanika had its triumphant concert in Belgrade for an audience of 4000 people. The end of the concert was marked by standing ovations. That was a cultural event of the month. Balkanika is an authentic product of Serbian cultural industry. It wasn´t supported by any ministry. It wasn´t recognized in the next year´s budget. On 150 free tickets that were given to the press, author had to pay the state a tax of 18% in advance. That is Serbia too, land of wonders!