Arts Market in Croatia

ARTS MARKET IN CROATIA Daniela Angelina Jelinčić and Ana Žuvela INSTITUTE FOR INTERNATIONAL RELATIONS Sažetak Upitno je može li se tržište umetnina u Hrvatskoj uopće nazvati tržištem budući da se većina transakcije najčešće zbivaju u tzv. sivoj zoni. Kulturna politika nema jasne odrednice prema toj temi šta se odražava i na neusklađenost u zakonodavstvu. Iako se javno finansiranje provodi kako s nacionalnog, tako i s regionalnog odnosno lokalnog nivoa, sredstva nisu dovoljna. Izostaju i snažnije inicijative u privatnom sektoru, a gotovo je nepoznat i sustav aukcijskih kuća. Obrazovanje u ovom području je prilično dobro, ali izostaje priprema studenata za budući rad na tržištu. Većina institucionalne infrastrukture nalazi se u glavnom gradu, Zagrebu, a time i dobar dio javnih financija šta se reflektira u snažnoj centralizaciji sektora. Prilike koje donosi ulazak u Evropsku uniju ne odnose se samo na više finansija već, uz postojanje jasne nacionalne politike i na mogućnosti restrukturiranja sektora. Ključne reči: tržište umetnina, kulturna politika, vizualne umetnosti, likovne umetnosti, samostalni umetnik, umetnička galerija, ustanove vizualne umjetnosti, nezavisna umetnička scena, poduzetništvo u kulturi, obrazovanje u vizualnim umetnostima Summary It is questionable if arts market in Croatia can be called the real market since most of transactions are made in the so called grey zone. Cultural policy does not have clear guidelines in this field which is also reflected in the bad legal harmonization. Although public financing is provided from the national but also regional and local level, awarded funds are not sufficient. Stronger initiatives in the private sector are also lacking as well as the system of auction houses. Education in this field is rather good but lacks entrepreneurial aspects. The greatest number of institutional infrastructure is in the capital city of Zagreb and so is the great share of public finances. This is reflected in the strong centralization of the visual arts sector. Opportunities offered by the EU accession are not related only to the greater finances but, parallel to the clear national policy, to the possibilities of the sector restructuring. Keywords: arts market, cultural policy, visual arts, fine arts, freelance artist, art gallery, visual art institutions, independent art scene, cultural entrepreneurship, visual arts education Introduction Artists in Croatia find it very hard to play the game without the rules. This is the reason why only a small number of them can live from their art work From 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. . The meaning, position, relevance and role or arts market in Croatia are very ambiguous concepts; research into the topic is repeatedly confronted with the question if there is an actual arts market, how does it function, what are the rules of that market, how detached or attached it is to the complete arts scene in the country, how does it reflect the trends and dynamics of the arts in Croatia, what are the key parts of the arts market infrastructure. Attempts to answer these questions were hindered by the chronic lack of data on market movements in the arts (generally, arts and culture are one of the areas marginal to the national statistical categories or are introduced as a novelty, an exception rather than a rule). In such circumstances, research had to be based on the attainable sources and selected parts of Croatian cultural infrastructure that can be defined as important actors of the arts market cycle: public visual arts institutions, independent arts organizations specialized in visual arts, private sector art galleries and individual artists. Although the situation surrounding arts market in Croatia has somewhat improved during the last ten years, it is still far from the framework in which Western Europe’s gallery sector and visual artists work. In the words of Tihomir Milovac, the curator of the Museum of Contemporary Arts in Zagreb, “in the Central and Eastern European countries (the EU members), the situation is not much better than in Croatia, but there is the greater impact of the market which influences the development of private galleries, private foundations and collections”. On the other hand, public visual arts sector in Croatia has been trying to achieve more important position in the region; namely, with the opening of the greatest public investment in culture since the national independence, the Museum of Contemporary Art, Zagreb has reached the status of the regional visual arts center. Public non-profit sector fulfills its mission quite well with numerous museum and gallery institutions systematically working on presenting visual artists and artwork. Still, studies like “Zagreb as a Cultural Product” show that the level of perception in the international arena is not proportional to full potentials Croatian visual arts scene has. Private initiatives, which could put the country on the international arts market, are scarce while the public cultural sector has little if any regard for developing its influence in the arts market system. Based on negative experiences with commercial effects greatly influencing quality of museums’ and galleries’ policies, Western European public visual arts scene, museums, non-profit galleries and alike, make an effort to place market authority over their planning and programming within limitations. But in Croatia, due to weak economic power and general lack of art buyers, lack of private initiatives for commercial galleries openings and due to traditional practice of buying art directly from artists, a stronger arts market is yet to be established. 1. Cultural policy and arts market development The general objectives of the national policy include the pursuance of values such as: cultural pluralism (aesthetic and multiethnic), creative autonomy, the increase and diversification of sources for financing culture, polycentric cultural development, encouraging cultural participation as a new quality of life and co-operation between the public and the private sector to increase efficiency, quality, employment and innovation. http://www.culturalpolicies.net/web/croatia.php?aid=21, accessed on 08.05.2012. The most important priorities of the cultural policy, introduced at the beginning of 2000 were, among others: building up the functions, work methods and public respect for the new Culture Councils; creating mixed funds for cultural investment; renewing and readapting the cultural infrastructure; finalizing a complete registry of cultural monuments; and furthering the use of information technology in culture. The vision of the Strategic Plan of the Ministry of Culture for the period of 2011-2013 http://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. is creating a society in which the freedom of cultural and artistic expression and media, along with the protection of cultural heritage are the foundations of preservation and development of cultural and national identity in the community of European countries and European Union. The best indication of cultural policy inclusion and treatment of arts market is the fact that arts market, as syntagma, cannot be found in any of the official cultural policy documents, starting from the Council of Europe’s “National Report on Cultural Policy of the Republic of Croatia” (Ministry of Culture of the Republic of Croatia, 1998), national strategic document from 2001, “Croatia in the 21st century: Strategy of Cultural Development” (Ministry of Culture of the Republic of Croatia, 2001) through to the most recent “Strategic Plan 2012– 2014”. Subsequently, there are no specific instruments of the cultural policy that can directly be linked with the arts market. The policy instruments are developed for those areas that policy addresses, regulates or are within the remit of policy strategic planning. None of this applies in the case of arts market. Still, although cultural policy decision-making processes do not intently include arts market, the implementation of policy (namely, legislative framework for the field of culture) in various areas can have direct effects on the arts market. Some of those areas are legislation on the status of freelance artists, act on museums, tax exemptions on purchase of the artwork, regulation on the distribution of public budget funds etc. 1.1. Cultural policy and visual arts “National Report on Cultural Policy of the Republic of Croatia” from 1998 brings the key question of visual arts treatment in the cultural policy which is the issue of making a distinction between basic definitions of the field in the applicable legislation. To be precise, Law on the Rights of Freelance Artists and Encouraging Cultural Creativity (NN 43/96) does not introduce widely used concept of visual arts, which covers unmentioned areas of visual expressions and leaves possibilities to include new directions of visual creativity. Rather, the document uses the term fine arts despite the fact that visual arts encompasses all those forms of artistic expression that were created on the technology developments of our time (e.g. photography, animation, video-art, internet and digital art, integrated media, multimedia etc.) and which are common artistic tools, especially with the younger generation artists. On the other hand, fine arts connotes paintings, graphics and sculpting. Another problem arises from insufficiently accurate definition of applied arts – the term is explained differently in the Law on the Rights of Freelance Artists and Encouraging Cultural Creativity to how it is operationally implied and used by the Croatian Freelance Artists' Association, an organisation that encourages and promotes creative work and public activity in culture and the arts (Council of Europe, 1998: 128). It represents freelance artists' common interests, so as to help them achieve their goals and to protect their rights. A freelance artist becomes a member of the Association on the basis of his/her creative work and can apply to have his/her contributions paid from the national budget, as long as he/she meets the criteria laid down in the Regulations about the procedures and conditions for the recognition of the rights of artists to have their retirement, disability and medical insurance paid out of the national budget of the Republic of Croatia http://www.culturalpolicies.net/web/croatia.php?aid=514&cid=1110&lid=en&curl=531, accessed on 20.05.2012. . Ergo, alignment of terms, definitions and interpretations between Law brought by the state and Regulations brought by the professional association that conducts the Law’s implications, is crucial. Still, this has yet to happen – the Law has not been amended since 1996. However, Regulation about the procedures and conditions for the recognition of the rights of artists to have their retirement, disability and medical insurance paid out of the national budget of the Republic of Croatia (NN 119/04) does include multimedia in the same category as fine arts thus opening more possibilites for visual arts to eventually replace outmoded concepts and terms. The confusion and inconsistency in the usage and application of basic terms is spread wideover – from policy and legislation to education. It is a task for Ministry of Culture to resolve, after over 20 years of an unchanged position while the circumstances have tremendeously transformed. One of the two main objectives of the “Croatian Ministry of Culture’s Strategic Plan 2012-2014” is “protecting and preserving cultural heritage” which is to be realized with the “development of the role of museums and galleries”. Although galleries are initially mentioned, museums are in the focus of this strategic objective. This corresponds to the strategic planning set forth in Ministry of Culture’s “Strategy of Preservation, Protection and Sustainable Economic Development of Cultural Heritage for the Period 2011–2015” where gallery sector is also disclosed as a by-product next to museums (galleries are stated as an example of good practice in sense of enterprenurial approach to managing and showcasing cultural heritage for the tourism market). “Strategic Plan 2012–2014” presents, as one of the specific objectives, “development of the independent culture” that includes support for visual arts programmes. Around 180 visual arts programmes, encompassing retrospective, individual, group and thematic exhibitions in gallery spaces as well as exhibitions by Croatian Association of Visual Artists in Zagreb, Istria, Rijeka, Split and Osijek are funded by the public budget annualy. 1.2. Cultural policy in practice: Visual arts funding models The financial support for visual arts is accessible from three budgetary sources; national, regional and municipal (local). In the annual Open Call for Public Needs in Culture Programmes, visual arts can apply for funding in the following categories: core activities of the cultural institutions and professional associations in culture; museum and gallery activities; visual arts, art monoghraphs, design and architecture; new media culture; and international cultural cooperation http://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. . In the 2010, visual arts field received 0.54% of the total state expenditure in culture (in real numbers little under 750.000 Euro) http://www.culturalpolicies.net/web/croatia.php?aid=623, accessed on 15.05.2012. . Graph 1. shows the Ministry of Culture share in the total public budget and Table 1. its role in culture and in visual arts. Graph 1. Ministry of Culture share in the total public budget Source: Ministry of Culture (personal communication with the Ministry analyst, Mr. Boris Jurinić) **Since 2012 the Department for Nature Protection is no longer under the responsibility of the Ministry of Culture Table 1. Ministry of Culture role in culture and in visual arts 2005 2006 2007 2008 2009 2010 2011 Total budget expenses (Central level) in 000 € 11.714.328 12.793.326. 14.401.013. 15.372.323 15.723.198 16.043.110 15.991.934 Total expenses –Ministry of Culture in 000 € 103.020.951 121.152.700 148.089.973 166.733.489 143.948.699 134.773.658 127.356.218 Ministry of Culture part in % 0.88 0.95 1.03 1.08 0.92 0.84 0.80 Total public expenses for culture per capita 58.45 67.75 78.30 86.64 77.45 70.95 N/A Ministry of Culture expenses for culture per capita 23 27 33 38 32 30 30 Total expenses –Visual arts in €* 663.390 860.682 854.660 962.449 758.040 745.511 760.465 Ministry of Culture expenses for visual arts per capita 0.15 0.20 0.20 0.22 0.18 0.17 0.18 Number of financed institutions in visual arts through the MC public Open Call 152 132 151 145 116 114 140 Number of approved programs in visual arts through the MC public Open Call 224 221 287 265 217 236 287 Source: Ministry of Culture (personal communication with the Ministry analyst, Mr. Boris Jurinić) *Besides the Ministry of Culture financial programme “Fine arts, Visual arts and Audiovisual arts”, visual arts are also financed through “New Media Cultures” programme. Numbers presented in the table relate only to the “Fine arts, Visual arts and Audiovisual arts” category. When it comes to financing, numbers on culture in general are not great. Only in 2007 and 2008 the Ministry of Culture budget reached over 1 percent of the total public budget. In the following years, a decrease is evident. In terms of total expenses for culture per capita, they follow the previous trend: they were the highest in 2007 and 2008 (around 78 and 87 €). After these years, expenses are decreasing. Expenses for visual arts by the Ministry of Culture amount to around 30 €, being again the highest in 2008, 38 €. These numbers are somewhat greater knowing that the Ministry of Culture awards some more funds for visual arts through the “New Media Cultures” programme but it was quite difficult to sort out what precisely refers to visual culture within this programme, therefore this category was not singled out. In the period of 2005-2011 in this way, the Ministry of Culture supported between 114 and 152 institutions and between 217 and 287 programmes in the field of visual arts. It was not possible to calculate the value of artwork acquisitions. A number of visual arts organisations received programme support and funding from the “Culture 2007 – 2013 programme” (such as Croatian Institute for Movement and Dance: „Dance Explorations Beyond Front@“, „W_EST – WHERE“, and BADco.: „Black North SEAS“) accessible through Cultural Contact Point Croatia, a department established within the Directorate for International Cultural Co-operation of the Ministry of Culture in 2006. One of the most significant cultural policy incentives in the field of visual arts in Croatia is the status of the freelance visual and applied artists which is covered within the Law on the Rights of Freelance Artists and Encouraging Cultural Creativity (NN 43/96, NN 44/96 - Amendment). Furthermore, in July 2011 the new Law on Foundation "Kultura nova" was adopted, and created the necessary legal framework for the functioning of the foundation that will be dedicated to the promotion and development of civil society in the field of contemporary culture and arts, encompassing visual arts. The funding for Foundation "Kultura nova" shall be obtained partly through the Lottery fund, donations and other sources according to the Law http://www.culturalpolicies.net/web/croatia.php?aid=538, accessed on 15.05.2012. . Croatian Ministry of Culture grants “Vladimir Nazor” annual award for cultural activities, including visual arts: the award is given to the “best artistic achievements in literature, music, visual and applied arts, dramatic arts, architecture and urbanism in the Republic of Croatia”. Additional funding for visual arts is available through Cultural Entrepreneurship programme. This programme has been initiated by the ministry of Culture and the Ministry of Economy, Labour and Entrepreneurship in 2008 as a grant programme of small value. The aim of the project is to stimulate cultural entrepreneurship, cultural industries' and entrepreneurial projects promotion in the field of specific cultural sectors, including visual arts. Programme users are small-sized economic subjects involved in cultural activities – craft companies, small and medium-sized companies and cooperatives, institutions excluding public institutions, independent artists, art organizations and cultural institutions which implement cultural entrepreneurship projects. 1.3. Cultural policy current issues and topics One of the principal issues in Croatian cultural policy, directly connected with the financing of culture and overall cultural production, is a wide gap of disproportion in allocation of public funds between public sector and independent arts scene – current ratio is 93:7 percent in favour of public institutions in culture. This situation creates a production lag in the overall cultural sector and causes much frustration among artists, cultural workers and other non-institutional sector representatives. Current Minister of Culture highlights this problem as one of the priorities that should be addressed by the new administration. One of the solutions is dispersion of funds sources like newly established Foundation „Kultura Nova“ which is to bring otherwise lacking financial opportunities for the independent arts production. Another issue is that cultural industries in Croatia have not been recognized as a specialised field of cultural development. Subsequently, there is no overall legal framework to specifically promote and develop the cultural industries. The legal provisions that affect cultural industries refer to specific cultural sectors (book production, music, films, etc.) and to economic sectors, e.g., small entrepreneurship, activities of transnational media corporations in Croatia, etc. Cultural industries are statistically not transparent nor are they perceived, by the public policy and public in general, as a profit-driven sector. Lack of appropriate statistics for this sector makes it impossible to assess the turnover or employment figures for most cultural/creative industries in Croatia, but it is evident that employment in the sector has been growing constantly in the period 1998-2008 http://www.culturalpolicies.net/web/croatia.php?aid=423, accessed on 08.05.2012.. 1.4. Overview of legislative framework for Art market The already mentioned Law on the Rights of Freelance Artists and Encouraging Cultural Creativity covers issues such as the rights of freelance artists, cultural and artistic creativity, registration and scope of artistic organizations and can be said to be the main law. There are several other laws regulating other fields (such as the Law on Trade which regulates conditions for trade on domestic and foreign markets; the Law on Consumer Protection regulating consumers’ rights) which do not cover issues related to the art market but, in fact, show the lack of regulation in the field of arts market. Also, there is the Law on Income Tax which regulates tax breaks for donations in culture. Rights of freelance artists are regulated by the Law on the Rights of Freelance Artists and Encouraging Cultural Creativity. Among other art sectors, this Law also regulates visual arts. Based on their professional work in the field of arts, freelance artists have the right to retirement and disability benefits as well as medical insurance. If a freelance artist requires the mentioned benefits, related contributions are paid from the state budget based on the Professional Council’s decision together with the Minister of culture approval. The revision of these rights is made every five years. The artist who is not entitled to the budgetary contributions for retirement benefits and health insurance has the possibility to pay them himself/herself. As to gain the right to budgetary contributions, the artist, beside acting as an art creator as his/her sole profession, has to fulfill several other conditions. The first condition is that in the last three years his/her annual income outside the field of artistic creation has not been greater than the average Croatian income for the last year. Besides he/she must act publicly according to the following criteria: 3 independent exhibitions (with different artwork), or 2 independent exhibitions and 2 group – conceptual exibitions, or 5 group – conceptual exhibitions, or 3 independent multimedia projects, or 2 independent and 2 group – conceptual multimedia projects, or 5 group multimedia projects (video, film, computer art, performance or other forms of contemporary art creations) together with the professional association’s confirmation, or 5 participations on group – conceptual exibitions, or 2 independent exhibitions of sculptural works in stone, bronze, iron, steel, wood, glass or other materials, or 1 independent and 2 group – conceptual exhibitions, or 5 juried exhibitions. Besides, some additional criteria are needed as elements for their combination (such as awards, catalogues/monographs, reviews/professional texts, etc.). The same applies to the field of applied visual arts. Greatest problems due to bad harmonization of different laws arise in the field of trade. During tourist season, various artwork, decorations and souvenirs are sold in the open space while persons selling them do not have registered businesses, do not have entrepreneur status, do not fulfill minimal technical conditions for office spaces and do not pay taxes. In this way, trade in amateur artwork endangers the freelance artists’ existence due to the unclear legislation in the field of amateur art. Since inspections are transferred to the Ministry of Culture, problems of illegal trade are out of focus of the business inspection since legislation which regulates cultural activities does not include inspection or sanctions linked to freelance artists’ work – amateur painters. Besides, it also has influence on consumers since they purchase reproductions or plagiarism instead of authentic artwork. Persons involved in artwork trade are also subject to the Law on Consumer Protection According to this Law, trader must clearly, visibly and legibly highlight the sales conditions of the product and issue an invoice for it. since it is the right of consumers to know the origin of artwork and to be given the receipt for purchased product. In this way, illegal business and inexistence of art trafficking also leads to avoiding tax payments since it is impossible to determine the tax base http://www.suvremena.hr/1380.aspx accessed on 24.05.2012.. The Law on Income Tax regulates tax breaks for donations in culture up to 2% of the revenue reported in the annual tax files submission. Exceptionally, tax deductions are increased for greater donations if approved by the Ministry of Culture. 1.5. Decentralisation of cultural policy and arts scene There are two levels of (de)centralisation in arts/culture in Croatia that have an effect on arts market. The first level is territorial centralisation and it describes a situation where most of the art production is concentrated in the capital city, Zagreb. Zagreb is the cultural centre of Croatia concerning art scene in general and especially when it comes to creative industries sector. Some other Croatian cities have an important role in the Croatian cultural life but the greatest number of artists lives in Zagreb since it has the necessary cultural infrastructure. Participation of different levels of government expenditure for culture breakdown is shown in percentages in Table 3. Table 2. Participation of different levels of government in the total expenditure for culture 2005 2006 2007 2008 2009 2010 State level 41,08% 41,68% 44.08% 44,85% 41,89% 42,87% Provinces/Regions 4,65% 4,22% 4,04% 3,97% 3,86% 3,5% City of Zagreb 23,80% 23,45% 21,35% 21,20% 25,87% 22,25% Towns/cities 28,06% 28,20% 27,93% 27,26% 25,41% 28,46% Municipalities 2,42% 2,45% 2,60% 2,72% 2,97% 2,91% Source: Ministry of Culture (personal communication with the Ministry analyst, Mr. Boris Jurinić) Throughout the whole period 2005-2010, the Ministry of Culture’s share in total expenditures for culture is the greatest comparing it to other government levels and amounts to around 42%. On the opposite side, municipalities’ share is the lowest is always lower than 3%. Regions (called Counties in Croatia) also contribute with small amounts which are around 4% in the whole measured period. The second largest government funding level are towns/cities which spend some 27% for culture, Zagreb excluded. The capital city, Zagreb is after the state level, the second largest funder of culture awarding almost the total amount of what all other Croatian cities spend, around 23%. This is also reflected in the centralization of arts. Centralization trends in visual arts sector is also seen in the number of relevant galleries (registered by the Croatian Freelance Artists’ Association). There are 61 galleries in Zagreb while other cities number far less galleries that that (second largest – 7 etc.). Data neither on attendance nor on the number of programs in galleries is available (see Table 3. and Graph 2). Table 3. Cities with the greatest number of galleries/exhibition spaces* Cities Number of galleries Zagreb 61 Split 7 Rijeka 7 Dubrovnik 6 Pula 6 Knin 5 Osijek 5 Varaždin 5 Bjelovar 4 Koprivnica 4 Labin 4 Poreč 4 Rovinj 4 Zadar 4 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.  Graph 2. Territorial distribution of galleries in Croatia The second level is the so-called institutional centralisation or policy focus on institutional art framework, meaning that public institutions have a priority in the policy stucture – from the secure organisational status (including the employment security of cultural workers in the cultural institutions) to firm public funding arrangements. Such policy provisions function in favour of institutions, or are institutionally centralised and are not stimulating in the arts market direction. In terms of development of financial programmes in the field of visual arts, the more democratic, de-etatised and more professional system of assessment and decision-making on the distribution of budgetary funds has been introduced by forming arts councils - joint decision-making by the Ministry of Culture and representatives of the cultural sector was established on the national level through the establishment of several Culture Councils (Law on Culture Councils, NN 53/01, NN 48/04, and NN 44/09) which include Culture Council for fine arts and the media (later changed to new media cultures) among others. Establishemnt of the Culture Councils has decentralised decision-making processes previously reserved for political and administration structures. 1.6. Cultural participation According to available data provided by the Croatian Bureau of Statistics, total household expenditures in the period 2005-2009 are more than 9.000 € per year and have slightly increased practically every year in the mentioned period reaching 10.158 € in 2009. Around 6% is the share of the household recreational and cultural consumption in the household total consumption which amounts to some 600 €. Data on rural/urban population expenses for culture are not available. The said is represented by the Table 4. Table 4. Consumption on culture Total yearly household expenditures Recreational and cultural consumption share in household total consumption % Yearly average household expenditure for recreation and culture 2005 9.291 6,22 578 2006 9.260,30 6,21 574,8 2007 9.867,5 6,22 613,76 2008 9.936,5 5,44 540,55 2009 10.158,4 5,99 608,49 Source: Croatian Bureau of Statistics, Statistical Information 2008 and 2011, www.dzs.hr Table 5. presents participation in culture per cultural sectors in the period 2005-2010. Table 5. Participation in culture per cultural sectors Museums Theaters and performing arts 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). Libraries (all) Galleries and visual arts Cinemas Archives 2005 N/A 1.311.000 N/A N/A 2.174.000 10.991 2006 1.674.049 1.378.000 N/A N/A 2.666.000 N/A 2007 N/A 1.471.000 7.230.000 N/A 2.483.000 N/A 2008 N/A 1.412.000 N/A N/A 3.283.000 9.329 2009 2.191.189 1.571.000 N/A N/A 3.524.000 N/A 2010 N/A N/A N/A N/A 3.355.000 N/A Source: Croatian Bureau of Statistics, Statistical Yearbook of the Republic of Croatia 2008 and 2011, www.dzs.hr * 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). Attendance data for Croatian cultural institutions is hardly obtainable. Although it is obligatory for some cultural institutions to follow those statistics, it is difficult to measure the real attendance, especially its economic share in the institutions’ overall earnings. Since the Croatian Bureau of Statistics does not offer data on visual sector institutions (such as galleries) it is impossible to make comparison with other cultural sectors. Realistically, the greatest attendance is evident to libraries (7.230.000) but only numbers for 2007 are presented. Greater attendance is to cinemas than to theatres. If we are talking the media in the visual arts, it cannot be claimed that they have a great role in audience development. Culture is treated rather poorely in the best-selling daily newspapers (one or two pages) and no special weekly or monthly specialized in-magazines exist as is usual for the design, architecture, lifestyle, etc. The same situation applies to the webspace. Realistic art criticism texts also lack while information on foreign events are sporadically present. Specialized newspapers (such as Zarez, Hrvatsko slovo) bring texts of a higher quality but visual arts are not treated separatelly but equally as all other cultural sectors. Public television features no programmes on visual arts at all and private televisions follow the sector only for blockbuster exhibitions. Only the 3rd programme of the Croatian radio broadcasts visual art programmes. Generally, it cannot be said that the media have great, if hardly any role in the participation in the visual arts. 2. Art market supply and demand cycle in Croatia The size of Croatian arts market is very small - the upper middle classes that were traditional connoisseurs and buyers of art are diminishing and there is no evident increase in the number of serious art collectors. As claimed by the gallery owners http://www.nacional.hr/clanak/32820/milijunske-tajne-trgovaca-umjetnina, accessed on 10.05.2012., today’s supply and demand cycles in the arts market are dictated by the following artwork criteria: rarity, popularity and high-price. The prices in the arts market are influenced and formed by many factors; from sellers, gallery owners and museum experts to current trends. Still, the crucial criteria are the quality, author and year of origin, motif and technique of the artwork. The acquisition of the works of art by public 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 budgetary restraints – the acquisitions depend on the public budget donations and are not constant in a sense that they provide some stability for the arts market flow. According to artist Slaven Tolj (2012), supply and demand are not in balance and generally, effect and cause relation between actors that create arts market is inconsiderable and insufficiently visible. Majority of the artists create work without explicit aspirations for the value of artwork to be positioned and circulated on the arts market. Apart from commissioned work as exception, most of the artwork in Croatia, especially relevant works of art, would be produced without special regard of the arts market movements and trends. 3. Art market infrastructure: key actors Any listing of relevant arts market actors in Croatia is more of a conjecture than a fact. Still, existing practice and system within the visual arts sector in Croatia and its connections with the transfer and trade of artworks, indicate that the following institutions, organisations and individuals can be presented as relevant actors in the arts market: Public cultural institutions (relevance on account of consistent acquisitions or works of art, cooperation with corporative sector and exhibiting work by contemporary Croatian artists): Museum of Contemporary Art, Zagreb For more information on Museum of Contemporary Art in Zagreb, see http://www.msu.hr/; Museum of Modern and Contemporary Art, Rijeka For more information on Museum of Modern and Contemporary Art in Rijeka, see http://www.mmsu.hr/Default.aspx?art=406&sec=2 ; and Gallery of Fine Art, Split For more information on Gallery of Fine Art in Split, see http://www.galum.hr/hr/Naslovnica/4/home.aspx. Although the public status of public institutions implies that art trading is not a priority function for the public instituions, the acquisition of the works of art by public museums and galleries is very important factor in the dynamics and trends of arts market. Public institutions’ influence is, however, as already mentioned, limited with the budgetary restraints. Independent arts organisations (relevance on the account of exhibiting and selling work by unconventional contemporary artists, intensive cooperation and presence on the international independent visual arts scene, partaking at the international arts fairs): Art Workshop Lazareti, Dubrovnik For more information on Art Workshop Lazareti from Dubrovnik, see www.arl.hr and Miroslav Kraljević Gallery, Zagreb For more information on Miroslav Kraljević Gallery, see http://www.g-mk.hr/ . Independent art scene has been particulary active in the field of visual arts since the 1990’s – from engaging in production of contemporary art forms, to intensifying international cultural cooperation in the field by showcasing Croatian work abroad and by hosting relevant international exhibitions and visual art projects. However, activities of the independent visual arts scene have never been focused towards marketing of the artwork or creating stable art market flow. Rather, the independent scene is more engaged with fostering the development, accessibility, quality and the flow of the artistic activities, without strategic planning for the financial outcome of those activities. Amongst independent actors directly or indirectly connected to visual arts in Croatia and apart from the organisation listed as a relevant organisations in the context of the arts market, following must be highlighted: BLOK (Lokalna baza za osvježavanje kulture which organizes the Urban Festival dealing with various urban subjects) For more information, see http://www.blok.hr/ , WHW – what, how & for whom (curators’ collective) For more information, see http://www.whw.hr/whw/index.html , Kontejner – studio for contemporary artistic practices For more information, see http://www.kontejner.org/o-nama , ArtAnale from Split; Days of Croatian Performance Art from Varaždin; Photo Gallery Lang from Samobor For more information, see http://fotogalerija-lang.com/ . Private initiatives including individuals (relevance on the account of acquisiton, collecting and exhibiting of expressions of visual Croatian artists, partaking at the international art fairs): LAUBA For more informaton on Lauba, see http://lauba.hr/hr/naslovnica-2/ and Tomislav Kličko, Cettina Gallery For more information on Cettina Gallery, see http://www.cettinagallery.com/, Marisall Gallery For more informaton on Marisall Gallery, see http://www.marisall.com/index.php?option=com_content&view=article&id=101&Itemid=101&lang=hr and Virtual Museum of Avant-garde Art/Collection Marinko Sudac For more information on Virtual Museum of Avantgarde, see http://www.avantgarde-museum.com/en/museum/ . A small number of private collections that have been established during the past decade have played a significant role on the national arts market. Apart from the listed ones, those include Edo Murtić Foundation and Collection Hanžeković. These private collections have, along with the public institutions and independent visual arts sector, contributed towards developing viable market for the national visual arts production. Visual arts manifestations/events: ZGRAF is an international exhibition of graphic design and visual communications, held triennially in Zagreb, Croatia from 1975. The organiser of the exhibition is the Croatian Association of Artists of Applied Arts (ULUPUH) http://www.zgraf.hr/, accessed on 20.05.2012. . ZAGREB SALON – APPLIED ARTS AND DESIGN is a representative annual exhibition of contemporary art of the Republic of Croatia, established by the Zagreb City Council in 1965. It is organized by Croatian Association of Artists of Applied Arts (ULUPUH). This acclaimed visual art fair shows annual achievements by contemporary Croatian visual artists, including architecture and urbanism, applied arts and design http://46zagrebackisalon.com/, accessed on 20.05.2012. . POREČ ANNALE is the oldest Croatian manifestation exhibiting work by contemporary Croatian artists (group work). It is held every year, beginning of August in the gallery space of the old Istrian Parliament House in Poreč and is organized by the Open College Poreč http://www.poup.hr/anale/prva.aspx?stranica=391, accessed on 20.05.2012. . SPLIT SALON is a biannual manifestation of contemporary arts founded in 1969 as a group exhibition of artists from Split. It is organized by Croatian Association of Artists from Split http://www.hulu-split.hr/str/izlozbe/salon/35salon.htm, accessed on 20.05.2012. . BLUE SALON is an arts manifestation that was first held in 1957 in Zadar, and was continually convened until 2005. In 2011, Blue Salon was again held in Zadar, as a triennial of Fine Arts, showcasing work from the leading contemporary Croatian and international artists. Organizer of this manifestation is Art Gallery of the Zadar National Museum http://nmz.hr/en/, accessed on 20.05.2012. . SLAVONIA BIENNALE is an arts manifestation organized by Gallery of Fine Arts in Osijek since 1966. This is the only juried arts exhibition in Slavonia encompassing painting, sculpting, graphics, multimedia and video-art with alternating applied arts, urbanism and architecture http://www.gluo.hr/ogaleriji_1_en.html and http://dizajn.hr/#305-21-slavonski-biennale, accessed on 20.05.2012. . BIENALLE OF SMALL FORMATS is organized by Croatian Association of Visual Artists/Croatian Association of Artists from Split. The exhibition showcases works from Croatian sculptors and painters. YOUTH SALON is one of the most significant biannual manifestations that present work of young Croatian artists. It is organized by the Croatian Association of Visual Artists. CROATIAN BIENNALE OF PAINTING is the most recent, or the “youngest” of the visual arts manifestations in Croatia. The first edition took place in 2011 with the aim to become a generator of new artistic creations and movements. The manifestation is focused on contemporary Croatian painting. ADRIA ART ANNALE is an exhibition of the contemporary Croatian art. By probing the prevalent truths, this manifestation questions the possibility of new type of society For more information on Adria Art Annale, see http://split.com.hr/foto/aaa/172/7218 . Artists colonies: There are no major artists’ colonies in Croatia. All such endeavors are mainly created by the amateur artists and hold no greater significance for visual arts field, cultural policy or arts market in Croatia. However, following should be mentioned: Arts Colony Ston, Baranja Arts Colony (held in the National Park Kopački Rit), and Summer Art Colony Brač (held in Supetar on the island of Brač). Art Fairs: There are no significant art fairs in Croatia. Participation and trading at the art fairs is linked with the international arts fairs due to non-existence of such opportunities on the national level (see chapter 6.). Art Galleries: There are many galleries in Croatia and there are many lists of galleries in Croatia Most 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-zagreba-i-zapreia.html , accessed on 22.05.2012. . This is due to the fact that the listing, or the given category of the gallery is directly connected to the system of securing rights and benefits for the freelance artists, i.e. the given criteria of the number of individual or group exhibitions refers to exhibiting in galleries officially listed by the Croatian Association of Freelance Artists. According to that list http://www.hzsu.hr/likovno.html, accessed on 22.05.2012. , there are 180 galleries throughout the country (including the number of museums that are also listed as referenced exhibiting institutions). Most of these galleries exhibit, represent and sell artwork of Croatian visual authors. Still, the real number of galleries is far greater as it includes hundreds of art-souvenir shops/galleries selling souvenir art, reproductions and graphics that appeal to the tourism market. It is impossible to detect the accurate number of these type of galleries as plenty are opened and closed from one tourist season to another. Artists’ Studios: Studios are given to artists for certain period, under contractual conditions by the local municipalities. There are no known examples of national or regional level of administration giving their real-estate units to be used as artists’ studios. Criteria for bestowing city’s spaces for this purpose varies from one city to another: in Zagreb, minimal lease or rent for the given space is charged For more information, see http://www1.zagreb.hr/slglasnik.nsf/10288f1421388ff8c1256f2d0049015b/efee89eb9b4a7650c12573c20035bbce ; in Dubrovnik there is no criteria and the spaces are bestowed directly, without any procedures; in Rijeka, studios are given to the artists according to the joint procedures between City of Rijeka and the local branch of the Croatian Association of Visual Artists For more information, see http://www.rijeka.hr/VizualnaUmjetnost and can be used for both work and living; in Split, the entire block of buidlings were granted to be used by artists; and in Osijek, larger space capacities are given to artists for work. Such an irratic and disorganised system that varies from one city to another has many downfalls. Artists are exposed to the benevolence of the municipal governments and local political leaders: the latest illustration of this problem is happening in Zagreb where, with no prior warning or explanation, local government raised the rent on all artists’ studios as well as the rent on the home building of the Croatian Association of Visual Artists, the Meštrović Pavillion, by 400% (from 750 Euro to 5.900 Euro). This action by the local government caused a stir amongst Association’s members, cultural professionals and wider public and the outcome of the undergoing negotiations between Association and the City are yet to produce a new situation. Auction houses: Auctioneering of art work doesn’t have a tradition in Croatia and not many galleries or organisations engage in it, resulting in only two organisations that are active in this domain: Auction house Kontura Ltd. and Laval Nugent gallery. Auction house Kontura Ltd. was founded in 2002 as the first official company for auctioneering in Croatia. This company is the sole holder of the auctioneering licence given by the Ministry of Culture of the Republic of Croatia, meaning that it is authorised to bid and sell protected cultural goods (arts and antiquities). Auction house Kontura Ltd. deals with fine arts: paintings, sculptures and graphics For more information, see http://www.kontura.com.hr/default.asp?ru=9&sid=&jezik=1. The Laval Nugent gallery has ventured into the auctioneering business in the following areas: art, antiquities, numismatics and philately and old postcards. Art includes paintings, drawings, prints, sculptures and photographs by Croatian and foreign authors For more information, see http://www.aukcije-lavalnugent.com/cms.php?id_cms=7 . The following table shows the poor development of institutional arts market in Croatia. Table 6. Art market infrastructure in numbers 2005 2006 2007 2008 2009 2010 2011 Number of galleries* 154 154 154 180 180 180 180 Auction houses/ professional intermediaries on art market 1 1 1 1 1 2 2 Private collections/museums n/a n/a n/a n/a n/a n/a 1 Source: Croatian Freelance Artists' Association (HZSU) * The actual number of galleries in Croatian cities was 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 in the requested period. 4. Visual arts education, professional associations and arts market According to the Statistical Yearbook 2009 http://www.culturalpolicies.net/web/croatia.php?aid=72, accessed on 15.05.2012. , there are four art academies in Croatia, all on university level: Academy of Fine Arts Zagreb, Arts Academy of the University of Split, The Academy of Arts Osijek (unit of the University of Josip Juraj Strossmayer) and Academy of Applied Arts (Faculty of the University of Rijeka). Impeding is the inauguration of the Academy of Visual Arts and Music at the University of Dubrovnik (expected beginning is academic year 2013/2014). Apart from these art schools, there is a School of Design both at the Faculty of Architecture and at the Faculty of Graphic Arts in Zagreb. All of the listed programmes are provided by the public institutions under authority of the national government, its Ministry of Science, Education and Sports. Students, thus obtain their education under conditions that apply to all national higher education institutions. Existing educational programmes do not have management curricula Announced 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. or programmes for intermediaries in art market nor develop visual artists’ entrepreneurial skills except for the School of Design at the Faculty of Architecture in Zagreb which offers courses in marketing, design management and presentation skills but they mainly serve to facilitate work of the future individual designer at the service market. Consequently, visual artists lack knowledge on economy, financial management, strategic planning, art theory, cultural policy, arts managment and interdisciplinary approach to all those fields. It is difficult to track progession of artists from education to professional accomplishment. Generally, artists, as a professional category, are ambiguous terrain when it comes to research and statistics in Croatia; data on the number of employed or unemployed artists is unattainable Within 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. as is the data on artists’ average yearly incomes. The only available number is the number of visual artists as registered by the Croatian Freelance Artists’ Association which totals to 582 in 2012 (see Table 7.). Table 7. Overview of artists’ associations and the number of independent artists Number of artists’ associations Number of artists’ associations in the field of visual arts Number of independent artists Number of independent artists in visual arts Number of employed persons in culture 2005 N/A N/A 1318 629 N/A 2006 N/A N/A 1292 617 N/A 2007 N/A N/A 1299 610 N/A 2008 N/A N/A 1323 612 N/A 2009 N/A N/A 1269 592 N/A 2010 N/A N/A 1285 604 N/A 2011 N/A N/A 1296 598 N/A 2012 286* 53** 1261 582 3846 Source: Register of Associations of the Republic of Croatia, Register of Art Organizations, Croatian Freelance Artists' Association (HZSU) (personal communication) and Ministry of Culture (personal communication) * Total number of all cultural (not necessarily artists') associations in Croatia is 6912. ** Total number of all cultural (not necessarily artists') associations in Croatia in the field of visual arts is 311. *** 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. Numbers of independent artists shown in the Table 4. is the one registered by the Croatian Freelance Artists' Association. It might be that there are more independent artists but these are the ones who deserved this status as to claim their rights for health insurance and retirement benefits. Generally, the decrease of the number of independent artists is noted in the period 2005-2012. Some increase is seen in the period 2006-2008 and again in 2009-2011 while the number drops in 2012 again. Rather similar pattern is seen in the number of independent visual artists. Mainly, artists are members of professional associations which indirectly provide for their social and medical care security. The most significant artists’ associations are Croatian Association of Visual Artists (HDLU), Croatian Association of the Applied Visual Artists (ULUPUH) and Croatian Designers’ Society (HDD). Croatian Association of Visual Artists (HDLU) is nongovernmental, non-for-profit and politically neutral union of professionals established in 1868. Its membership consists exclusively of visual artists of all generations, working in all forms of expression and disciplines. The basic aims of the Association are: to support and encourage contemporary visual expression, to improve and protect the freedom of visual expression, to organise exhibitions, to collaborate in preparations of the laws and rules regulating visual arts production and social rights of the artists. Croatian Association of the Applied Visual Artists (ULUPUH) is the only professional association of the applied visual artists in Croatia established in 1950 although with a longer history (dating back to 1886). It represents the roof organization for all branches of visual arts which have a specific application (scene design, costume design, light design), architecture, horticulture, photography, caricature, illustration, comics, animated cartoons and applied painting, industrial design, clothing design, precious metals design, ceramics, chinaware and glass, restoration etc. at the state level. It is non-governmental, non-profit professional organization with the aims of: Croatian applied arts development; improvement and protection of visual arts creativity freedom and the adequate assessment of Croatian applied arts; protection of applied works of art and of copyright; impact on Croatian cultural policy; cooperation with other artists organizations in Croatia and abroad. Croatian Designers’ Society (HDD) is a non-governmental, non-profit and voluntary professional association established in 1983 and is invlolved in promoting common professional and social interests of Society members by creating systematic conditions to improve work in the field of design. The main goals of HDD are the development, promotion and improvement of design creativity in Croatia, representing interests and status of the profession and the HDD members. Its members are active in the following fields: graphic design, product design, electronic media design, typography, photography, illustration, fashion design and theory design as well as in design education. Other authorized professional artists associations in the field of visual arts in Croatia are: Association of the Naive Artists of Croatia, Croatian Association of the Applied Visual Artists Zagreb, Croatian Freelance Artists’ Association, Croatian Designers Society Zagreb, Croatian Association of Visual Artists Dubrovnik and Croatian Association of Visual Artists of Istria, Međimurje, Osijek, Rijeka, Split, Varaždin, Zadar and Zagreb. All these associations are professional and public and established by the artists themselves as to protect their interests. Leaders are democratically elected by the members of artist community which ensures the control over the associations’ work. Activities of associations are primarily of cultural nature such as organization of members’ exhibitions, annual exibitions of special artistic achievements and are not closely linked to influence arts market mechanisms. They are funded by memberships, Ministry of Culture and local government. Protection of artists’ rights are not reflected in some long-term policy of artist associations except for the fact that Croatian Freelance Artists’ Association cares about their social and medical care. Authors’ rights are usually managed by the artists themselves, often with the help of lawyers or some kind of oral agreement is made. Rarely it is done in a written form since ti is a part of a grey economy, cash payment avoiding taxes. 5. Corporations and Art market Recently, a more significant contribution to Croatian culture sector funding has been stemming from donations and sponsorship, particularly of large companies such as Adris, T-COM, VIPnet, Filip Trade, B-net, and banks (e.g. ERSTE Bank Croatia, Hypo Alpe Adria Bank Croatia, Zagrebačka banka, etc.). The precise amounts and/or indication of trends cannot, however, be given due to lack of statistical data (The Ministry of Culture only has information on the decisions and issued certificates concerning tax relief for companies that requested these certificates and no information on the amount of these sponsorships or donations is available). These contributions are given mostly on a project basis. It has to be noted that in 2009 and 2010, the funds have narrowed down, as a consequence of the global recession. http://www.culturalpolicies.net/web/croatia.php?aid=73, accessed on 07.06.2012. Still, corporate support for visual arts in Croatia has had many positive ramifications, specifically in the partnership projects with the visual art institutions. Most important projects are T-HTnagrada@MSU.hr – a collaborative project by T-Mobile, Croatian Telecom and Museum of Contemporary Art in Zagreb in which T-Mobile funds the award, an acquisition of the artwork that will be included in the Museum’s permanent collection. Additionally, every year Erste Bank announces a competition for the project called “Erste fragmenti” (Erste Fragments), through which it supports young and emerging visual artists up to 30 years of age and art students, by buying their works of art (sculptures, paintings, prints and installations) and by granting an additional cash prize for the best work. 6. Cultural relations, networking and partnership Within the arts market remit, a significant role is held by the Ministry of Culture that regularly funds Croatian artists’ exhibitions abroad as well as international collaborative visual arts projects that have an impact on arts market. For example, Croatian Ministry of Culture is a partner in manifestation titled "Croatie, la voici! - Festival de la Croatie en France” that includes presenting contemporary Croatian artists, namely Sanja Iveković, Damir Očko and Igor Eškinja in renowned French art centres like Palais de Tokyo and Musée d'Art Contemporain du Val-de-Marne. In 2010, Croatian Ministry of Culture and French Embassy in Zagreb jointly organised international arts market seminar which was one of a kind event concerning this topic. Apart from the governmental role in the cultural relations and networking, there are examples of independent arts organisations and galleries establishing partnerships like Galerie Michaela Stock from Vienna and Art Workshop Lazareti, known as Art radionica Lazareti (ARL) from Dubrovnik sharing exhibiting space at 2011 Viennafair. 7. Development implications of current cultural policy in the arts market field As to be able to review the current situation in the field and its possible prospects, SWOT analysis is done in the Table 8. Table 8. SWOT analysis of the arts market in Croatia Strengths Weaknesses Talented artists Several strong public institutions (Zagreb, Rijeka, Split) Strong independent art scene Professional associations of artists Rather large number of art events Art events with a long tradition Foreign tourist market as the potential purchase of artwork Low perception of culture as a strong development resource Inexistence of relevant cultural statistics Legally non regulated arts market Low level of art entrepreneurship development and poor preparedness/low education of artists for entreprenership Low private investments in the arts Poor media treatment of the arts Lack of public funds for visual arts Opportunities Threats Harmonization with EU regulations Diversified funding (EU, international funds) “Creative Europe”, the EU support programme which “encourages a shift from a mentality of grants to loans“ which may stimulate art entrepreneurship World trends of art entrepreneurship increase Global and inner crisis Further decrease of public finances for the arts Centralization of visual arts scene, especially in the institutional sector Inexistence of real strategic planning in culture High VAT rate on artwork Administrative barriers for investments and entrepreneurship development General value crisis in the society As to improve arts market in Croatia, first, general goals as well as real cultural policy and strategic planning should be set. Clear analysis of the arts market is needed and the chaotic situation in the field is partly due to the inexistance of firm statistical data which should be regularly available. Having a clear cultural policy objectives, also legal regulation of the arts market would be facilitated. In terms of financing, as to avoid further problems in the field, visual arts sector should start applying for EU funds instead of relying almost exclusively on public budgets. In this field additional education may be offered. Also, it would be recommendable to exclude the state from arbitrating in the relations entrepreneur – artist. It would encompass stronger tax reliefs for entrepreneurs as well as the whole business sector. At the same time, the role of the state should be stronger in education processes in the area of cultural/creative industries and should stimulate public (artistic) actions which contribute to the education in the business sphere (such as in design for ex. Dan D, Re:aktor) but should also stimulate strengthening of public museums/galleries as places where relevant artistic values are confirmed and where the state can indirectly have a regulatory role as to avoid everything to the market forces. In this way, the state can strengthen its public function at the same time initiating the private capital investments. It would also be recommendable to introduce stronger tax reliefs for investors in visual artwork acquisitions, to stimulate public-private partnership when establishing new museums and galleries as well as financially support establishment of private museums/galleries and foundations (such as Museum of Design, Museum of Architecture, Museum of New Technologies, Museum of Fashion).  8. References Compendium of Cultural Trends and Policies in Europe (2012), Croatia: Cultural Policy Profile, Council of Europe/ERICarts. http://www.culturalpolicies.net/web/croatia.php (access: 08.05.2012.) Compendium of Cultural Trends and Policies in Europe (2012), Croatia: Cultural Policy Profile, Council of Europe/ERICarts. http://www.culturalpolicies.net/web/croatia.php?aid=423 (access: 08.05.2012.) Compendium of Cultural Trends and Policies in Europe (2012), Croatia: Cultural Policy Profile, Council of Europe/ERICarts. http://www.culturalpolicies.net/web/croatia.php?aid=21 (access: 08.05.2012.) Compendium of Cultural Trends and Policies in Europe (2012), Croatia: Cultural Policy Profile, Council of Europe/ERICarts. http://www.culturalpolicies.net/web/croatia.php?aid=515 (access: 10.05.2012.) Compendium of Cultural Trends and Policies in Europe (2012), Croatia: Cultural Policy Profile, Council of Europe/ERICarts. http://www.culturalpolicies.net/web/croatia.php?aid=538 (access: 15.05.2012.) Compendium of Cultural Trends and Policies in Europe (2012), Croatia: Cultural Policy Profile, Council of Europe/ERICarts. http://www.culturalpolicies.net/web/croatia.php?aid=623 (access: 15.05.2012) Compendium of Cultural Trends and Policies in Europe (2012), Croatia: Cultural Policy Profile, Council of Europe/ERICarts. http://www.culturalpolicies.net/web/croatia.php?aid=63 (access: 15.05.2012) Compendium of Cultural Trends and Policies in Europe (2012), Croatia: Cultural Policy Profile, Council of Europe/ERICarts. http://www.culturalpolicies.net/web/croatia.php?aid=71 (access: 15.05.2012) Compendium of Cultural Trends and Policies in Europe (2012), Croatia: Cultural Policy Profile, Council of Europe/ERICarts. http://www.culturalpolicies.net/web/croatia.php?aid=72 (access: 15.05.2012) Compendium of Cultural Trends and Policies in Europe (2012), Croatia: Cultural Policy Profile, Council of Europe/ERICarts. http://www.culturalpolicies.net/web/croatia.php?aid=514&cid=1110&lid=en&curl=531 (access:20.05.2012.) Council of Europe (1998), Kulturna politika Republike Hrvatske. Nacionalni izvještaj. Zagreb: Ministarstvo kulture Republike Hrvatske Croatian Bureau of Statistics (2011), Statistical Information, Zagreb: Croatian Bureau of Statistics. www.dzs.hr (access: 08.05.2012.) Croatian Bureau of Statistics (2008), Statistical Information, Zagreb: Croatian Bureau of Statistics. www.dzs.hr (access: 08.05.2012.) Croatian Bureau of Statistics (2011), Statistical Yearbook of the Republic of Croatia, Zagreb: Croatian Bureau of Statistics. www.dzs.hr (access: 08.05.2012.) Croatian Bureau of Statistics (2010), Statistical Yearbook of the Republic of Croatia, Zagreb: Croatian Bureau of Statistics. www.dzs.hr (access: 08.05.2012.) Copf, 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. http://birn.eu.com Franceschi, B. (2010). Personal interview. Jelinčić, D. A. and Žuvela, A. (2010), Zagreb kao kulturni proizvod, Zagreb: Institute for International Relations. Ministry of Culture of the Republic of Croatia (2012), Strategic Plan for the Ministry of Culture, Zagreb: Ministry of Culture of the Republic of Croatia. http://www.min-kulture.hr/userdocsimages/NAJNOVIJE%20NOVOSTI/Strateski%20plan%20Ministarstva%20kulture%202012%20-2014%20%20-%20revidiran%20za%20web%201604201A2.pdf (access: 12.05.2012.) Ministry of Culture of the Republic of Croatia (2012), Open Call for the Public Needs in Culture Programmes, Zagreb: Ministry of Culture of the Republic of Croatia. http://www.min-kulture.hr/default.aspx?id=7285 (access: 15.05.2012.) Ministry of Entrepreneurship and Crafts of the Republic of Croatia (2012), PORTOR, Ministry of Entrepreneurship and Crafts of the Republic of Croatia. http://sor.mingorp.hr/pitanja.htm#clanovi (access:13.05.2012.) Ožegović, N. (2007), Milijunske tajne trgovaca umjetnina. Nacional 27.03.2007. http://www.nacional.hr/clanak/32820/milijunske-tajne-trgovaca-umjetnina (access: 10.05.2012.) Pravilnik o postupku i uvjetima za priznavanje prava samostalnih umjetnika na uplatu doprinosa za mirovinsko i invalidsko te zdravstveno osiguranje iz sredstava proračuna Republike Hrvatske. Narodne novine 119/04. http://www.propisi.hr/print.php?id=6112 (access: 24.05.2012.) Registar udruga Republike Hrvatske. Ministarstvo uprave. http://www.appluprava.hr/RegistarUdruga/faces/WEB-INF/pages/searchForm.jsp (access: 29.05.2012.) Registar umjetničkih organizacija. Ministarstvo kulture. http://www.min-kulture.hr/default.aspx?id=82&pregled=1 (access: 30.05.2012.) Reiser, M. (2000) Galeristi se brane od falsifikatora. Vjesnik 27.4.2000. http://www.vjesnik.hr/html/2000/04/27/Clanak.asp?r=kul&c=4 (access: 16.09.2010.) Tolj, S. (2012). Personal interview. 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) Zakon o kulturnim vijeæima. Narodne novine 53/01, 48/04, 44/09. http://narodne-novine.nn.hr/clanci/sluzbeni/311745.html (access: 24.05.2012.) Zakon o porezu na dohodak. Narodne novine br. 177/04. http://narodne-novine.nn.hr/clanci/sluzbeni/313706.html (access: 24.05.2012.) Zakon o trgovini. Narodne novine, br. 175/03 – pročišćeni tekst, 103/03, 170/03 i 55/04. http://narodne-novine.nn.hr/clanci/sluzbeni/340389.html (access: 24.05.2012.) Zakon o zaštiti potrošaèa. Narodne novine, br. 79/07. http://narodne-novine.nn.hr/clanci/sluzbeni/298920.html (access 24.05.2012.) Dictionary of Terms and Concepts BLACK MARKET - The illegal business of buying or selling goods or currency in violation of restrictions such as price controls or rationing. Black-market transactions typically occur as a way for participants to avoid government price controls or taxes. It is also the means by which illegal products - such as stolen goods - are bought and sold. GREY MARKET - also known as parallel market, is the trade of a commodity through distribution channels which, while legal, are unofficial, unauthorized, or unintended by the original manufacturer. The term, refers to workers being paid under the table, without paying income taxes or contributing to such public services as retirement benefits and and health insurance.