7. Financing and support
Moldova
Last update: February, 2015
Per capita expenditure in the field of culture, arts and sport in 2013 constituted 301.4 MDL (EUR 16.14).
Last update: February, 2015
Table 3: Public cultural expenditure by level of government, in million MDL, 2013
| Level of government |
Total expenditure in million MDL |
% share of total |
|---|---|---|
| State budget | 376.9 | 37 |
| Budget of the administrative-territorial units | 644.0 | 63 |
| Total | 1 020.1 | 100 |
Source: Ministry of Finance, 2013.
Last update: February, 2015
Table 4: State cultural expenditure: by sector, MDL, 2013
| Executed at the core component, 2013 | ||||
|---|---|---|---|---|
| executed | effective expenditures | accounts receivable | accounts payable | |
| Total, central public authority | 252 523.3 | 255 006.9 | 2 198.5 | 6 236.8 |
| inclusive: | ||||
| Total, education | 94 705.8 | 93 914.8 | 803.3 | 3 044.8 |
| Total, higher education | 39 192.9 | 39 192.9 | - | - |
| Academy of Music, Theatre and Fine Arts | 39 192.9 | 39 192.9 | - | - |
| Total, specialised secondary education | 36 703.8 | 36 213.2 | 625.1 | 1 706.6 |
| Colleges | 35 397.5 | 34 896.9 | 621.9 | 1 641.3 |
| Dorms | 1 306.3 | 1 316.3 | 3.2 | 65.3 |
| Total, secondary education | 21 508.1 | 21 508.7 | 178.2 | 1 338.2 |
| Boarding Lyceums | 21 508.1 | 21 508.7 | 178.2 | 1 338.2 |
| Total, activities in the field of culture | 147 754.0 | 147 910.8 | 1 292.0 | 2 539.2 |
| Libraries | 19 672.2 | 19 717.0 | 110.6 | 998.2 |
| Museums | 21 341.6 | 21 721.4 | 127.5 | 1 113.3 |
| Theatres | 83 030.1 | 83 030.1 | - | 128.0 |
| Other institutions | 1 588.0 | 1 598.4 | 1.8 | 53.0 |
| Cinematography | - | - | 652.8 | - |
| Artists' unions | 3 579.2 | 3 563.9 | 81.9 | 56.4 |
| Cultural activities | 9 217.7 | 9 217.6 | 0.4 | - |
| State Agency for Protection of Morality | 439.1 | 442.7 | 15.4 | 40.0 |
| National Commission of the Republic of Moldova for UNESCO | 354.7 | 350.6 | - | 35.6 |
| Cultural activities | 8 351.4 | 8 269.3 | 301.6 | 114.7 |
| including: from the government's reserve fund | 468.9 | 468.7 | - | - |
| Periodicals | 2 975.7 | 3 172.3 | 17.0 | 206.6 |
| Magazine "Moldova" | 900.0 | 900.0 | - | - |
| Publishers | 2 075.7 | 2 272.3 | 17.0 | 206.6 |
| Institutions in the cultural field | 1 494.1 | 1 468.0 | 9.9 | 46.7 |
| Agencies | 1 494.1 | 1 468.0 | 9.9 | 46.7 |
| Total, administrative bodies | 5 178.7 | 5 131.6 | 70.5 | 399.5 |
| The Ministry Central Office | 5 178.7 | 5 131.6 | 70.5 | 399.5 |
| Social insurance and assistance | 415.0 | 409.2 | 5.8 | - |
Source: Data selected from the Report on Ministry of Culture Budget Execution 2013.
The major share of total financing sources of the Ministry comes from the basic component of the state budget – 92%, while 8% comes from the special means component - these coming from offering paid services, leasing immovable heritage and sponsorship.
Last update: February, 2015
Artists receive some financial support for their work from the state procurement system, managed by the Ministry of Culture. The funding available for acquisitions is insufficient and procurement is somewhat sporadic, which significantly limits the scope of financial guarantees for artists. Accordingly, they are obliged to become involved in other activities: teaching, performing, writing musical reviews, street theatre, travelling fairs etc.
In an attempt to improve the situation of retired artists, the government provides a modest grant to the most renowned artists once per year. The shortage of budgetary resources has had an adverse effect on the proper functioning of the state cultural institutions. The extremely low monthly salary of about MDL 1 600 in the cultural field, compared to the country's minimal consumption basket value of over MDL 1 900, is not enough to cover even the minimum subsistence level.
Last update: February, 2015
20 years ago, there were 8 special artists' funds operating within most of the professional artists unions with the aim of providing support and social security protection for their members. These funds also provided scholarships to free-lance artists to spend time at the "Houses of Creation", where writers and artists could live cheaply and do their work in very good conditions and for several months per year. A new workshop for fine art artists was also constructed.
Since 1993, there was a steady decrease in the amount of funding available. The artists' funds were transformed into insignificant offices under the management of the artist unions. They are financed from donations and sponsorship which does not provide sufficient support or security to their members.
Last update: February, 2015
The Republic of Moldova offers the following awards for artists:
- the National Culture Awards (every three years);
- the National Youth Awards (once a year);
- the Ministry of Culture prize for the best play (once every 2 years);
- the Ministry of Culture prize for the best artistic works exhibited in the annual National Fine Arts Exhibition "Saloanele Moldovei";
- the Theatrical Union prize for the best production of the year;
- five Writers' Union awards for the best first work, anthology, prose, critique and thesis, and the "excellence prize" in recognition of a body of work by one writer (once a year);
- the Artists Union prize for works in different genres exhibited in the National Fine Arts Exhibition: "Saloanele Moldovei";
- the awards of the Union of Composers and Musicians for the best compositions and musical works (once a year); and
- for the 20th anniversary of the independence of the Republic of Moldova, the government has established 10 national awards (June 2011), amounting to 100 000 MDL each (EUR 6 250), for the most remarkable achievements in art, culture, and science.
On 12 March 2014, the government passed a draft law introducing a merit allowance for artists with outstanding achievements and notorious activities. Thus, those who are 60 years old will receive a monthly allowance equal to the amount of an average wage in the economy, which is paid by the government and is non-taxable.
Last update: February, 2015
There are 10 artists unions in the Republic of Moldova for: Writers, Theatre Professionals, Visual Artists, Musicians (individuals), Musicians and Composers, Craftsmen, Journalists, Film Makers, Architects and a separate one for Designers. During the 1990s, the main activity of these unions changed significantly. Originally these unions were the promoters of Communist programmes. Today they have been transformed into free associations mostly kept together by professional interests (often by economic reasons) rather than by some aesthetic or conceptual doctrine.
Although their social and economic status has declined dramatically, they still maintain a level of authority and importance. On the other hand, the lack of a coherent national direction for cultural policy has meant that the unions have devised their own policies and strategies in order to help themselves out of their precarious situation.
Since 1993, the Moldovan state budget no longer provides financial assistance to artists associations. The only financial support artists unions receive from the government is through the state procurement system managed by the Ministry of Culture.
In 2013 the Ministry of Culture distributed finance amounting to 2 000 000 MDL (EUR 107 300) for 60 cultural activities organised by non-governmental organisations. According to reports, these financial resources were used for awards, honoraria, jury remunerations, editing of programmes for events, posters and invitation letters, and for organising exhibitions and festivals.
Last update: February, 2015
Currently there are no reference research sources with precise figures on which fields of culture are financed and the amounts of sponsorship for culture carried out by businesses, private companies, foundations, agencies and individual donors. Culture is not listed among the priority investment and financing programmes of donor organisations that work in the Republic of Moldova, while the majority of foreign private companies have not formulated any communication strategies that would reflect their interest in culture. Public-private partnerships, like the culture of corporate social responsibility are at the incipient stage in the Republic of Moldova. Partnerships and relationships between business and the cultural sector are weakly developed, while the legal framework and tax benefits are not sufficiently incentive for serious investment in this sector. However, a small number of private companies and institutions have constantly supported and invested in developing the cultural sector.
One eloquent example is the Soros Foundation-Moldova (SFM), which over the last five years invested 401 109 USD in supporting and developing cultural projects in the Republic of Moldova. The Budget of SFM for the programme of cultural policy in 2013 was 21 329 USD, for project TRIO - Hub for Rural Cultural Development 2011-2013. The project ran from November 2011 to December 2013 with the financial support of the European Cultural Foundation, the Open Society Foundation and Soros Foundation-Moldova (FSM). The goal was to create models for the reorganisation of houses of culture in centres that provide cultural services for the population on the basis of partnership and cooperation between cultural institutions, organisations representing the civic sector and public administration institutions. The TRIO project Moldova marked the end of a long-term programme on consolidation of development capacities in the cultural sector in the Republic of Moldova, implemented by the European Cultural Foundation in 2007. A successful project of the Soros Foundation-Moldova in 2012 was TANDEM project, implemented in partnership with the European Cultural Foundation (Amsterdam), MitOst (Berlin), European Cultural Action (Brussels) and the Centre for Cultural Management (Lviv). The project activities were implemented with the financial support of the European Commission and the Robert Bosch Stiftung Foundation. The organisers intended to provide a breeding ground for cultural cooperation with the European Union countries, also to combat stereotypes that exist on both sides of the border, and facilitate implementation of artistic cooperation projects. Likewise, professionals from the cultural field from the European Union countries and from the Republic of Moldova and Ukraine had the opportunity to create new networks and collaborative partnerships. The budget for the programme of cultural policy of SFM in 2012 amounted to a total of 119 334 USD.
In 2013 "Edelweiss" Foundation supported and promoted talented persons from the Republic of Moldova through sponsorship of six cultural projects that reached 29 501 direct beneficiaries, with a budget of 306 088.4 MDL. A successful project entitled "Classical Music for All" was launched, which gathered 24 000 spectators eager to listen classical music performed by 65 young musicians from Chisinau Youth Orchestra. Cultural events dedicated to children from socially vulnerable families, disadvantaged children or those with disabilities, were also supported in partnership with the Cultural Society "Vatra". Likewise, the IV-th edition of the National Festival "Carols, Carols" was organised. Three spectacular concerts were held during the Festival, which brought together 11 choirs from across the country, symphonic orchestras and guests from abroad.
Among the private companies that have an active involvement in sponsoring cultural events are two mobile operators - Orange and Moldcell. These two companies, with clearly defined policies of civic responsibility are in most cases general sponsors of important cultural events.
The Orange Company through the Orange Foundation is involved in sponsoring cultural events, organised outdoor, dedicated to young people, or in inviting world-renowned performers, such as Goran Bregovic, Cesaria Evora, Thomas Anders, etc.
In turn, Moldcell Comps has an action programme entitled "Ambassador of Culture", which includes events such as the "Ethno Jazz Festival", the International Festival of Theatre Art "BITEI", the International Festival "Queen Violin" and many other important cultural events.
Of course there are many other small private enterprises like travel agencies or publishing houses that offer funds in different spheres of culture, but their agreement with organisers is of a barter nature and confidential. Unfortunately, the figures are not made public.
For now, these contributions may only be observed on promotion materials and during various launch events.
An alternative for financing the cultural sector and particularly the non-governmental organisations may be provided by adoption of the 2% Law, by which NGOs in the Republic of Moldova could be partially funded by taxpayers. A solution successfully implemented in several European countries is creation of a National Cultural Fund, with the budget being provided from different sources, such as: excise duty of 1% on the import of beer and alcohol products; excise duty of 1% on the import of tobacco products; conducting a cultural lottery; income collected from concerts (performances) organised specially by the cultural institutions, donations from individuals and businesses and other means not contrary to the legislation.