7. Financing and support
Latvia
Last update: September, 2019
Public total culture expenditure in 2017 was EUR 301.7 million. It corresponds to EUR 155.97 per capita and 1.1% of gross domestic product. After the decline in 2008-2010, total expenditure on culture in the public sector has increased. During the last years, expenditure for cultural services in the total public expenditure is about 3%, its share in GDP has not changed substantially and over the last ten years it is 1% -1.2% of GDP.
Table 7: Expenditure of General Government for cultural services, 2007-2017
Total expenditure | Per capita | % of total expenditure | % of gross domestic product | |
---|---|---|---|---|
2007 | 241 200 000 | 109.20 | 3.2 | 1.1 |
2008 | 278 200 000 | 126.93 | 3.1 | 1.1 |
2009 | 219 800 000 | 101.63 | 2.7 | 1.2 |
2010 | 198 300 000 | 93.52 | 2.5 | 1.1 |
2011 | 201 300 000 | 97.03 | 2.5 | 1 |
2012 | 238 700 000 | 116.73 | 3 | 1.1 |
2013 | 269 700 000 | 133.26 | 3.1 | 1.2 |
2014 | 283 100 000 | 141.45 | 3.1 | 1.2 |
2015 | 270 900 000 | 137.59 | 2.9 | 1.1 |
2016 | 243 700 000 | 124.97 | 2.6 | 1 |
2017 | 301 700 000 | 155.97 | 3 | 1.1 |
Source: Central Statistical Bureau of Latvia, 2014-2019
Last update: September, 2019
In general, there is a tendency to delegate more cultural functions to municipalities. The spending on both levels has significantly increased over the years. Estimates show that the share of municipal expenditure for culture has increased: in 2001, the expenditure of municipalities amounted to 50% of the total public expenditure, while in 2017 the share of local spending for culture increased to 60%.
Table 8: Public cultural expenditure by level of government, 2017
Level of government | Total expenditure in euro (million) | % share of total |
---|---|---|
State (central, federal) | 120.453 | 40 |
Regional (provincial, Länder, etc.) | - | - |
Local (municipal, incl. counties) | 181.214 | 60 |
TOTAL | 301.667 | 100% |
Source: Central Statistical Bureau of Latvia, 2019
Figure 3. Public cultural expenditure by level of government, 2001-2017
Source: Central Statistical Bureau of Latvia, 2019
Last update: September, 2019
There is no detailed information available about the cultural expenditure by sector.
Information of the Ministry of Finance on 2018 show that the budget of the Ministry of Culture is categorised as follows: 1. Governance and policy planning (1.8%); 2. Development of cultural space (32.1%) - including finances for arts, literature, film, as well as funding of the State Culture Capital Foundation and the programme of Latvia’s Centenary; 3. Safeguarding of culture (35.8%) including support for culture heritage and libraries; 4. Society integration activities (2.2%) and 5. Cultural education (28.1%) that includes support for vocational culture schools and three higher education establishments.
Last update: September, 2019
The financing of creative activities has substantially improved since 1998, when the Culture Capital Foundation was established (see chapter 1.2.2).
Members of the creative industries are entitled to receive a certain share of their royalties resulting from the creation, publishing, performance or other artistic activities tax-free; the share of which varies depending on the artwork.
The Law on the Status of Creative Persons and Professional Creative Organisations was adopted in 2017 (into force from 2018). The aim of the law is to provide support to creative persons who due to the specific employment nature do not receive regular income or are experiencing temporary loss of capacity to work (long-term unemployment or illness). Assistance is provided directly to so-called freelance artists or creative persons who are not employed by an employer, but receive a payment on the basis of the author contract. The law will be applicable to about 4000 persons in 28 creative organisations. Support is administered by the Council of the Creative Unions of Latvia in cooperation with the State Culture Capital Foundation. (See chapter 4.1.3 on social security frameworks.)
Last update: September, 2019
The State Cultural Capital Foundation supports the creative work of artists by providing “creative scholarships”, “educational grants” and their Creative Travel Support Programme. This programme supports applications for trips where the applicant as a participant takes part in the short-term scientific, creative work or training programmes, in conferences, festivals and competitions related to culture field, if a personal invitation or accreditation have been received. Educational and creative scholarships are granted for obtaining education and raising professional growth, for implementation of innovative and research projects, as well as for development of international relations promoting Latvian culture and art worldwide. Creative scholarships are exempt from tax.
See also chapter 4.1.3 on social security frameworks.
Last update: September, 2019
The following grants are available to Latvian artists:
- the State Cultural Capital Foundation gives project grants in 8 different branches (see also chapter 1.2.2), also to individual artists; it also assigns lifetime grants to outstanding culture and art people for lifetime contribution to the development of culture and arts. The lifetime grant is paid each month in addition to the pension and other income and are not taxed.
- at municipal level, support for professional artistic development is modest, yet provides some support for both individual and joint projects. However, gradually more and more regional and city municipalities announce regular project competitions and give support to different spheres of professional artistic activity (e.g. Riga, Ventspils, Cesis, Liepaja etc.);
- There are several artists’ residences: International Writers' and Translators' House in Ventspils; Rucka Artist Residency in Cēsis; The Residency and workshop centre SERDE in Aizpute announcing grants for artists (depending on their funding possibilities);
- scholarships are provided by banks or other institutions. Several private foundations support artists, musicians or writers and award their own grants and prizes;
- since 2009, Baltic countries participate in the Nordic-Baltic Mobility Programme in the field of Culture.
There are regular awards in nearly every art sector:
- In 2014, the Excellence Award in Culture was introduced. The goal of the award is to express national appreciation for outstanding international achievements in the culture field. A maximum of three prizes in culture may be granted annually, with a value of EUR 7000 euro large per award (after tax payments).
- There are annual awards -- initiated by the unions of the respective branches and partly financed by the State Cultural Capital Foundation and private sponsors -- in almost all the cultural branches, for example: the Grand Music Award, the National Film Festival, the Award for Achievements in Professional Theatre, the Purvīša Balva (a prize in visual arts), Literature Award, Cultural Heritage Award, The Folklore Award, Book Publishers Award and Architecture Award. In 2005, a new award (Adwards) was established by the Latvian Art Directors Club. Some of these awards include a cash prize.
Last update: September, 2019
The creative unions in Latvia, such as the Union of Artists and the Union of Writers, receive some direct financial support from the Ministry of Culture. Artists may receive project grants in the competitions of the State Culture Capital Foundation, including individual grants for developing an artistic project (e.g. writing a book). The Foundation also assigns life-long grants for outstanding, older generation artists. See chapter 4.1.3 about the Law on the Status of Creative Persons and Professional Creative Organisations and support to creative persons.
Last update: September, 2019
Precise and specific data about private sector funding for culture are not available, but a substantial part of the financing of the culture field is made by patronage. The biggest cultural patron is the Boris and Inara Teterev Foundation. Important patrons in the culture field until recent were also the ABLV Charitable Foundation, ALFOR Ltd., Rietumu Bank and Olainfarm Ltd. The closure of the ABLV bank in 2018 was a shattering event for the contemporary visual art scene in Latvia, as the sector relied heavily on this patron. Since 2017, Olainfarm Ltd is suffering from a conflict between the owners.
Additional sources
Legislation
Laws and translations:
http://likumi.lv/
Planning documents:
http://polsis.mk.gov.lv/
Planning documents available in English
Sustainable Development Strategy of Latvia 2030: http://www.varam.gov.lv/lat/pol/ppd/?doc=13857 or http://www.pkc.gov.lv/latvija2030
National Development Plan 2014-2020:
http://www.pkc.gov.lv/en/national-development-planning
(available in English and Russian)
Cultural research and statistics
Ministry of Culture
https://www.km.gov.lv/lv/kultura/kultura-timekli/informativi-materiali/petijumi
Central Statistics Bureau
of Latvia
http://www.csb.gov.lv
Digital Culture Map
of Latvia
https://kulturasdati.lv
Latvian Academy of
Culture
https://lka.edu.lv/en/research/
Culturelab /
cultural policy
https://culturelab.com/petijumi/