Content uploaded by Baiba Tjarve
Author content
All content in this area was uploaded by Baiba Tjarve on Feb 06, 2018
Content may be subject to copyright.
TRAMES, 2017, 21(71/66), 4, 383–402
FISCAL DECENTRALISATION IN
AMATEUR ART SECTOR IN LATVIA:
CASE OF SONG AND DANCE CELEBRATION
Baiba Tjarve, Ieva Zemite, and Kristine Freiberga
Latvian Academy of Culture
Abstract. The authors analyse the concept of fiscal decentralisation in culture. The fund-
ing model of the Song and Dance Celebration movement in the period 2011–2015 has been
chosen as a case study. Three criteria to assess the level of fiscal decentralisation are intro-
duced: 1. The equalisation of public expenditure regionally; 2. The ratio between central
and sub-central authorities in total public expenditure; 3. Distribution of public subsidies
among different groups of cultural producers. Qualitative and quantitative analysis has
been used for conducting the research: analysis of documents and of the budgets in 11
municipalities around Latvia. Conclusions show that although the division of competence
between the state and local governments meets the principles of decentralisation,
strengthening the non-governmental sector and individual financial contributions would
increase the level of decentralization and foster sustainability of the amateur arts sector and
the tradition of the Song and Dance Celebration in the long term.
Keywords: decentralization, fiscal decentralization, amateur arts, participation in arts,
Song and Dance Celebration, cultural economics, Latvia
DOI: https://doi.org/10.3176/tr.2017.4.06
1. Introduction
In most cases leisure time activities are to be carried out and sustained by
individuals and community members who are direct beneficiaries of these
activities. It is considered that amateur artists perform or produce strictly for their
own satisfaction and quite often that of other members of the local community,
while making their living some other way (Elkington and Stebbins 2014). Usually
an amateur group is self-financing and has no paid workers; their primary motive
for coming together is to have fun (Hill et al. 2011). However, amateur arts in
Europe are increasingly supported through different support mechanisms
(Villarroya 2015) or different fiscal measures on national or local level aiming to
Baiba Tjarve et al.
384
sustain social and economic benefits (Tjarve et al. 2017). The ambiguity of
financial maintenance of amateur art is in the centre of this study.
In Latvia, there are 69,600 amateur artists who take part in different amateur art
groups: they dance, sing in choirs, make theatre or come together to knit or weave.
They form 3.5% of the total number of inhabitants in Latvia in 2015 (Central
Statistical Bureau). The majority of these amateur artists sustain the tradition of
the Nationwide Song and Dance Celebration in Latvia, a phenomenon which
together with Song and Dance Celebrations in Estonia and Lithuania in 2008 has
been inscribed on the Representative List of the Intangible Cultural Heritage of
Humanity by UNESCO. The largest and the most significant groups are choirs and
folk dance groups, which acquire common repertoire and are exposed to certain
quality inspection in order to qualify for taking part in the Song and Dance
Celebration which takes place every fifth year in the capital city Riga.
Even though in many other countries amateur art groups are self-governed, in
Latvia the process is rather institutionalised, mainly due to the organisation of
amateur art sector during the Soviet period (Daugavietis 2015) and also due to the
complicated organisational process which involves numerous and diverse stake-
holders. Moreover, there are several fiscal support mechanisms both on national
and local level that sustain the tradition of Song and Dance Celebration in Latvia
(Tjarve et al.).
The current research is part of the research programme “Habitus: Sustainability
of Latvian Cultural Traditions in an Innovative Environment” which is carried out
by the Latvian Academy of Culture. The overall aim of the programme is to define
preconditions of safeguarding and criteria for the continuity of Latvian national
identity forming traditions in a changing and innovative environment. The current
article takes a closer look at economic factors that are crucial for the development
of the tradition of the Song and Dance Celebration in long term. The authors
presume that fiscal decentralisation of amateur arts is a precondition for sustaining
the tradition of the Song and Dance Celebration in future because of several
reasons. First, amateur arts in its essence are oriented at self-initiative and bottom-
up activities. Therefore, certain financial responsibility should be taken at the
lowest, individual level. Second, as amateur art in Latvia is strongly supported by
public authorities, it is significant to assess the level of fiscal decentralisation,
because the principle of subsidiarity aims to ensure that decisions are taken as
closely as possible to the citizens (European Union 1992).
The aim of the article is to assess whether and to what extent fiscal de-
centralisation applies to amateur arts and particularly to those artistic groups which
maintain the process of Song and Dance Celebration (choirs and dance groups) in
Latvia. For this aim, the authors have set several tasks: (1) to study theoretical
literature to understand what the criteria which allow to assess the level of fiscal
decentralisation in amateur art sector are; (2) to analyse the situation in Latvia and
collect data regarding choirs and dance groups in Latvia; and (3) to conclude
whether public funding for amateur arts in Latvia is financially decentralised.
Fiscal decentralisation in amateur arts in Latvia
385
2. Fiscal decentralisation in culture: theoretical considerations
Before taking a closer look at fiscal decentralisation aspects of the Song and
Dance Celebration in Latvia, the authors will shortly look at the concept of de-
centralisation in culture and particularly fiscal decentralisation in the field of
culture. After that the authors will suggest which criteria can be applied to assess
fiscal decentralisation in amateur arts sector.
In general, decentralisation – whether cultural, fiscal or political – is rarely
questioned (Kawashima 2004). Decentralisation, combined with democratic local
governance, is a key mechanism that can be and is being used to broaden public
sector legitimacy, transparency, and accountability, and so contribute to effective
governance and service delivery (Work 2001). Decentralisation can also be a key
factor in achieving objectives of sustainable development of the country, as it can
provide improved access to services and employment, increased people participa-
tion and enhanced government responsiveness (UNDP, German Federal Ministry
for Economic Cooperation and Development 1999, see also De Vries 2000). There
are also some arguments against the decentralisation, e.g. it can lead to unequal
conditions in different municipalities or not coordinated standards across the
country, e.g. in education (De Vries).
In international cultural policy research ‘decentralisation’ is often employed as
one of the criteria along with ‘creativity’ and ‘participation’. Researchers François
Matarasso and Charles Landry in their research project on major dilemmas in
cultural policy include different aspects of decentralisation (whether cultural,
administrative or fiscal) among dilemmas which cultural policy developments are
facing (Matarasso and Landry 1999). Finnish researcher Ilkka Heiskanen suggests
that decentralisation in culture is concerned with the following aspects: (1) provid-
ing equal cultural opportunities for all citizens; (2) educating people by involving
them in cultural policy decision-making and administrative practices; (3) maintain-
ing transparent communication and just and effective balance of power and
responsibilities between different levels of government; (4) organising efficient
allocation of resources for artistic and cultural production; (5) optimising the
division of sectorial jurisdictions in cultural administration; (6) optimising the
allocation of resources and the distribution of cultural values through politics, the
market and the voluntary sector (Heiskanen 2001:7–8).
Concerning the theory on the decentralisation in culture, two authors are of
particular importance. First of all, the cultural policy researcher Nobuko Kawashima
whose work is substantial in understanding decentralisation of culture and refer-
ring to this topic. Another important work on decentralisation in culture is
published by the Council of Europe in 2001 (Heiskanen). Speaking about culture,
Kawashima proposes division of three types of decentralisation: cultural de-
centralisation, political and fiscal decentralisation (Kawashima). This division is
slightly different from the general classification of decentralisation in political
science: in Kawashima’s classification political decentralisation includes also
Baiba Tjarve et al.
386
administrative decentralisation (classified separately by Work (2001) and Treis-
man (2007)) and additionally proposes the concept of cultural decentralisation.
Each category is distinct from the others in two respects: one in terms of its
location within the framework of cultural policy process and another in relation to
‘actors’ in policy within which inequality is found (Kawashima). Kawashima
suggests that cultural decentralisation is first and foremost a policy objective and
should be assessed in the light of the policy outcome. It is to combat inequality in
cultural opportunities among people. Fiscal decentralisation, in contrast, should be
about policy measure, or input, which is concerned with uneven distribution of
public expenditure among cultural producers. It sometimes addresses disparity of
spending levels made by different authorities. Political decentralisation, mean-
while, is about policy measure or policy administration. Hence it concerns the
power balance between different decision-makers or funding authorities
(Kawashima).
It is difficult to measure decentralisation and to isolate its effect from other
phenomena (Martinez-Vazquez et al. 2016). Taking into account that fiscal
decentralisation is very closely linked to political decentralisation, which is about
diffusion of political and administrative power for making and implementing
cultural policy, the authors primarily presume that fiscal decentralisation is con-
cerned with disparity of power between different spending authorities or decision-
makers. In most cases, it refers to the relationship between central, regional and
local bodies. What is distinctive with this type of decentralisation is that it does
not directly take consumers into consideration, but it is focused upon either
funders or producers of cultural and artistic activities.
It is the central question when the authors are going to look in more detail at
fiscal decentralisation and its significance in amateur art sector in general, and in
the process of Song and Dance Celebration in Latvia in particular. As a starting
point the authors take the suggestion of Kawashima that fiscal decentralisation
refers to the diffusion of public expenditure in the arts and culture, and is sub-
divided into three. The first is a concern to equalise public expenditure regionally
for the arts and culture. A typical accusation is that the centre is spending too
much in the capital city. The second sub-division of fiscal decentralisation con-
cerns the ratio between central and sub-central authorities in the total public
expenditure in culture. It may happen that the apparently increased contribution by
the local government is simply due to the withdrawal of the centre. The third is
about deconcentration of public subsidies among different groups of cultural pro-
ducers. Concentration of subsidy is often correlated to the location of organisa-
tions, or to different arts disciplines, organisations of different sizes, or according
to the degree to which organisations or art forms are established, and it can also
occur between ‘mainstream’ culture and ‘non-mainstream’ (e.g. non-European)
cultures.
There is only one study which has analysed economic aspects of the Song and
Dance Celebration in Latvia focusing on the financial contributions (both public
support and individual contributions) and assessing economic effects. The study
Fiscal decentralisation in amateur arts in Latvia
387
has been carried out almost a decade ago, in 2008 (LZA EI 2008). The main focus
of the study was on spending for the event of the Song and Dance Celebration that
took place in 2008. The study concludes that the government, municipalities and
participants are the most significant financial contributors in the organisation of
the festival. As the focus of this paper is on the process of the Song and Dance
Celebration during the period between the festivals, it is an original study.
3. Methodology
In the study the authors focus on the amateur art groups, more concretely on
choirs and dance groups that take part in the process of the Song and Dance
Celebration in Latvia. The aim of the article is to assess whether and at what
extent fiscal decentralisation applies to amateur arts and particularly to those
artistic groups which maintain the process of Song and Dance Celebration (choirs
and dance groups) in Latvia.
The authors introduce three criteria to assess whether there is a fiscal
decentralisation of amateur art sector in Latvia:
1. Whether there is equalisation of public expenditure regionally for the arts
and culture.
2. What is the ratio between central and sub-central authorities in the total
public expenditure in amateur arts sector.
3. Whether public subsidies are equally distributed among different groups of
cultural producers that are involved in the field.
To carry out the analysis, the authors have used mixed research methodology,
both applying qualitative and quantitative analysis:
1. Analysis of documents (laws, public reports etc.).
2. Case studies of 11 municipalities.
There are 110 municipalities and 9 republican cities in Latvia since the
Administrative territorial reform of Latvia in 2009 was completed, and only one
territorial level. Based on the classification of the municipalities in the state
Cultural Policy Guidelines 2014–2020 “Creative Latvia” (Ministry of Culture
2014), as well as on geographical principle – covering all the five planning regions
of Latvia (Ministru kabinets 2009) – 11 municipalities and republican cities were
chosen for the case study.
Riga was excluded from the case studies because of its complexity. Moreover,
the budget of Riga municipality includes a large share of the budget of the Song
and Dance Celebration which takes place in the city (LZA EI). The case of financ-
ing the Song and Dance Celebration movement in Riga would need a separate
study.
Years 2011–2015 were chosen because the period comprises the whole cycle of
the Song and Dance Celebration (2 years before the Celebration; year 2013 when
the Celebration took place; 2 years after the Celebration).
Baiba Tjarve et al.
388
Table 1. Review of the 11 municipalities analysed in the research
No. Classification of the municipalities Municipality Region
1 Centre of international level Liepāja Kurzeme
2 National development centre Jelgava Zemgale
3 National development centre Jēkabpils Zemgale
4 National development centre Jūrmala Rīga
5 Regional development centre Kuldīga Kurzeme
6 Regional development centre Tukums Rīga
7 Regional development centre Cēsis Vidzeme
8 Regional development centre Alūksne Vidzeme
9 Regional development centre Ludza Latgale
10 Regional development centre Balvi Latgale
11 Regional development centre Valka Vidzeme
Source: Cultural Policy Guidelines 2014–2020 “Creative Latvia”, Cabinet Regulation No. 391.
Created by authors.
3.1. Analysis of the budgets of 11 municipalities (2011–2015) has been
conducted. Three budget positions were analysed:
1) The municipality budget for
a) The remuneration (salaries for the leaders of the amateur art groups, the
employees of cultural centres),
b) The goods and services (that support the amateur art activities – organiz-
ing concerts, events, tours, transportation costs, making costumes etc.),
c) Maintaining the infrastructure needed for the amateur art groups (cultural
centres, buildings and places for rehearsals and concerts).
2) The state grants for the remuneration of the leaders of the amateur art
groups (salaries and state mandatory insurance contributions).
3) Donations and other grants raised by individual amateur art groups and co-
financed by the municipality.
3.2. Analysis of the performing art units (choirs and dance groups) which take
part in the process of the Song and Dance Celebration of 11 municipalities. The
analysis included identification of those groups which have established civic
associations (non-governmental organisations (NGOs)), and the analysis of annual
reports of these NGOs (data from the public database www.lursoft.lv).
4. Amateur arts sector in Latvia
The Latvian cultural policy model is centralized around the Ministry of
Culture, which is the main institution formulating and coordinating the state
cultural policy. There have been some changes towards decentralization and
involvement of non-governmental organizations and the civil society in the
cultural field, delegating a number of specific functions. One of the priorities of
Fiscal decentralisation in amateur arts in Latvia
389
the Cultural Policy Guidelines 2014–2020 “Creative Latvia” (Ministry of Culture
2014) is outlined as a preservation and development of cultural capital involving
community members in cultural processes. It means that cultural policy officials
have recognized the importance of the participation in the arts, mainly in terms of
social impact, as a tool to improve the quality of life and boost creativity of
individuals and communities.
Participation of Latvian inhabitants in amateur art groups since 2000 is stable:
around 3% of the population. In 2015, there were 69,600 participants in amateur
art groups in Latvia (see Figure 1). In 2018 the Song and Dance Celebration
dedicated to the centenary of the Republic of Latvia will take place. The
significant growth of the participants has been observed since 2015 and most
probably it is going to increase, as more and more people are willing to experience
this historical event.
Those amateur arts groups, which are established by the local authorities, are
mostly located at the culture centres, which operate under the jurisdiction of
municipalities; therefore they have direct administrative and financial support and
are publicly owned and operated. As we can observe in Figure 2, since the
collapse of the Soviet Union the number of culture centres has dropped by almost
half. Since 2000 the number of culture centres in Latvia is stable (around 550)
with the exception during the years of the economic crisis.
Amateur art activities are extremely diverse in essence. Survey on cultural
consumption in Latvia suggests that handicrafts, photographing and filming are
the most common participatory cultural activities of Latvian people (respectively
15%, and 13% are involved). Other amateur art activities involve just 2–6% of
Figure 1. Number of Amateur Performing Unit Participants in Latvia 2005–2015, thousand.
Source: Central Statistical Bureau, 2016. Created by authors.
Baiba Tjarve et al.
390
Figure 2. Number of culture centres in Latvia.
Source: Central Statistical Bureau, 2016. Created by authors.
respondents each: playing a musical instrument, engaging in visual arts (painting,
drawing, etc.), singing in a choir (around 4%), making creative work with
computer (home pages, design creation, etc.), writing articles in the press or
internet, dancing folk dances (around 3%), writing poetry, stories, dancing modern
dance, contemporary dance, singing in a group, playing in an orchestra, participat-
ing in amateur theatre, songwriting (Culturelab 2016). Despite relatively small
numbers of participation level, choir singing, the dance and folk ensembles are the
most significant activities of amateur art sector in Latvia. Once per five years, the
best amateur choirs and dance groups are selected to take part in the Nationwide
Latvian Song and Dance Celebration, which is among the most important cultural
events of the country. The last festival took place in the summer of 2013 gathering
about 40,000 participants that is more than 60% of all amateur artists affiliated to
collective amateur art groups (Central Statistical Bureau). The Nationwide Latvian
Song and Dance Celebration is made possible by the huge and stable framework
support by the municipalities. Moreover, there is a state authority implementing
the cultural policy in this field: the Latvian National Centre for Culture, which
carries out national cultural policy in the field of intangible cultural heritage and
its associated fields of amateur arts.
5. Fiscal decentralisation of amateur arts sector in Latvia
As explained earlier, the authors describe data that would help to answer three
questions helping to assess the fiscal decentralisation of Latvian amateur arts
sector.
Fiscal decentralisation in amateur arts in Latvia
391
5.1. Equalisation of public expenditure regionally for the amateur arts
and the Song and Dance Celebration
The first concern of fiscal decentralisation in culture is a question whether
public funding is equally distributed for the sector.
Local authorities in Latvia play the key role in organising and supporting the
local cultural life and particularly amateur art. “The Law on Local Governments”
defines the division of labour and responsibilities between the state and local
authorities in providing services, including those in the cultural field. According to
the Law, the local governments have autonomous functions to maintain culture
and facilitate the preservation of traditional cultural values and the development of
creative folk activity (Saeima 1994). The process of Song and Dance Celebration
is of special attention on a national level as well, secured by the Latvian National
Centre for Culture. Moreover, the legislative framework has been set to safeguard
the preservation of the tradition and it includes also financial incentives. “The
Song and Dance Celebration Law” (Saeima 2005) ensures the cyclical and
continuous process of the Song and Dance Celebration, ensures the preparation
process of the Celebration, moreover Section 9 determines the financial and
organisational responsibility of the State and local governments.
As can be seen, financial support to the Song and Dance Celebration process is
assigned by both – national and local authorities. Moreover, the state guarantees
not only support for the Celebration that takes place once every five years, but also
for the process to safeguard the tradition. As one of the instruments highly
appreciated in public discourse, is earmarked grant for the work remuneration of
the group leaders. Cabinet Regulation No. 670 (Ministru kabinets 2015), issued
pursuant to “The Song and Dance Celebration Law” regulates the State earmarked
grant for the payment of the work remuneration and state mandatory insurance
contributions of the group leaders of amateur art groups. The amount of the grant
for each group is calculated based on the special formula and taking in account
four aspects: 1) whether the group has operated for at least 2 years, 2) whether it
acquires the common repertoire of the Song and Dance Celebration, 3) whether the
group takes part in the state organized quality assessment showcases (exhibitions,
competitions) at least once per year, 4) whether the group takes part in the events
organized by the Latvian National Centre for Culture at least once per year. Based
on this Cabinet Regulation, grants have been allocated since 2012. Even though
this public incentive has been highly appreciated, results in case studies of 11
municipalities suggest the extent of this state grant is averagely only about 1–3%
of the total budget for the amateur arts.
Taking a look at financial incentives for amateur art on a local level, it is
important that there is a system of financial equalisation procedure to assist
financially weaker local authorities, which has been introduced in Latvia since
1995 and is regulated by the “The Law on Local Government Financial Equalisa-
tion” (Saeima 1998, Saeima 2015). In general, the financial equalisation system in
Latvia is evaluated as efficient by local and international experts (Pašvaldību
Baiba Tjarve et al.
392
Table 2. Review of the financial and organisational responsibilities between the state and local
governments in providing for the Song and Dance Celebration process
State Budget Local municipalities / founders of the amateur art
collectives
• the preparation and organisation of the
Nationwide Latvian Song and Dance
Celebration and Latvian School Youth
Song and Dance Celebration,
• covering of lodging and catering
expenses for Festival participants during
the Festival,
• the artistic preparation of the cultural and
historical regional Song and Dance
Celebrations,
• the organisation of the events provided
for in the Plan for the Safeguarding and
Development of the Song and Dance
Celebration Tradition,
• the payment of the work remuneration
and social tax of the chief conductors of
choirs and brass bands, the chief group
leaders of folk dance groups (collectives)
and folk music ensembles,
• the purchase of new creations,
• the payment of royalties in accordance
with the procedures specified in
regulatory enactments,
• the preparation and publication of the
sheet music of the concert repertoire and
folk dance descriptions,
• joint rehearsals for the mastering of the
repertoire,
• the further education of conductors and
group leaders,
• a State earmarked grant for the payment
of the work remuneration and social tax
of the group leaders of collectives
• ensure the premises for rehearsals
necessary for the activities of a choir,
orchestra, folk music ensemble, folk
dance or other collective,
• ensure the technical equipment necessary
for rehearsals,
• ensure the purchase of costumes, sheet
music and folk dance descriptions,
• ensure the work remuneration of the
group leader, conductor and principal
accompanist of a collective,
• ensure the transport services in the time
period between the Song and Dance
Celebrations and during the Festival
Source: Saeima. 2005. The Song and Dance Celebration Law. Created by authors.
konsultāciju centrs 2007). In principle, this means that municipalities may have
equal possibilities to support amateur arts and the tradition of the Song and Dance
Celebration. However, when we look at 11 case studies conducted in different
municipalities in Latvia, we see that support for amateur arts differs significantly.
See the financial overview of the budgets in 11 municipalities over years 2011–
2015 in the Appendix 1.
Fiscal decentralisation in amateur arts in Latvia
393
5.2. Ratio between central and sub-central authorities in the total public
expenditure for the sector
Another aspect to assess fiscal decentralisation is the ratio between central and
sub-central authorities in the total public expenditure for amateur arts. The authors
conducted the analysis of the budgets of 11 municipalities in Latvia – four cities:
Liepāja, Jūrmala, Jēkabpils and Jelgava, and 7 municipalities which included both
the town and rural territories: Cēsis, Balvi, Ludza, Kuldīga, Alūksne, Valka and
Tukums. Municipalities were asked to extract budget items for the remuneration
(the salaries for the leaders of the amateur art groups, the employees of cultural
centres), the goods and services (that can be addressed to supporting the amateur
art activities – organizing concerts, events, tours, transportation costs, making
costumes etc.), and the maintenance of the infrastructure needed for the amateur
art groups (cultural centres, buildings and places for rehearsals and concerts).
Moreover, from the case studies the authors identified the proportion of the state
subsidies, municipal support and fund-raised amount from donations and grants.
Full financial overview in 11 municipalities over years 2011–2015 can be found in
the Appendix 1 of this paper.
The results show that amateur art groups in Jelgava, Jēkabpils, and Kuldīga
have regularly applied for additional funding (1–4% of the total budget for
amateur arts in the municipality). Amateur art groups in Kuldīga in 2014 have
raised additional funding from donations and grants that is 9% of the total budget
for amateur arts, but this is an exception and does not give evidence about
Figure 3. Proportion of the municipality budget, state earmarked grant and fund-raised money in 11
municipalities in years 2011–2015, %
Source: Research Centre of the Latvian Academy of Culture, information provided by the 11
municipalities, 2017. Created by authors.
Baiba Tjarve et al.
394
consistent work in fundraising, as in the previous and following years the fund-
raised amount is less than 1%. The additionally fund-raised grants and donations
(fund-raised by cultural centres or municipal administration) can help to diversify
funding sources; however, this budget income part is consistently low, although in
some municipalities it might even exceed the amount of state earmarked grant that
is also proportionally low. Amateur art groups also may establish non-govern-
mental organisations mainly for fundraising reasons. This data will be analysed
later in the article.
Analysing the budget expenditures of the 11 municipalities in 5 year period the
most important budget item is the remuneration. In year 2013 which is the year
when the Song and Dance Celebration took place, the proportion has changed –
the expenses for goods and services have increased (transportation, costumes etc.).
Although the costs of remuneration are proportionally high, most of it (two-thirds)
goes for administrative staff and the employees of the cultural centres, not the
artistic leaders of the collectives (only one third is assigned to them). Only in
Cēsis this proportion is equal and in 2011–2012 even inverted and the artistic
leaders have received more than administrative staff. In general the remuneration
costs for amateur arts grow every year according to the overall tendencies in
Latvia that indicate gradual increase of salaries in the country (Central Statistical
Bureau of Latvia). However, results suggest the extent of the state grant for
salaries form only about 1–3% of the total budget for the amateur arts. Liepāja is
the only example where the proportion of the state grant is 6–9% of the total
budget and that likely indicates at smaller financial contribution from the local
municipality.
To conclude, the financial contribution of the municipalities to the amateur arts
in Latvia for ensuring the tradition and the continuity of the Song and Dance
Celebration compose more than 90% of the total budget for amateur arts.
5.3. Deconcentration of public subsidies among different groups
of cultural producers
The final aspect the authors are going to analyse to assess fiscal decentralisa-
tion in the amateur arts sector, is the deconcentration of public subsidies among
different groups of cultural producers. The authors are going to identify the main
actors in amateur art sector (more concretely concerning the choirs and dance
groups that take part in the process of the Song and Dance Celebration) and
whether there are other funding sources than municipal and state funding.
Since 2003 the share of performing amateur art units which operate outside the
municipal cultural centres varies between 10–15%. In the period between years
2011 and 2015 there were averagely 3773 amateur art groups in Latvia from which
3257 were institutionalized and worked within the culture centres (therefore their
founder is the municipality) and 515 units that were not affiliated to the culture
centres (Central Statistical Bureau). That means that the municipalities play a lead-
ing role managing and financing the largest part of collective amateur art groups.
Other founders include educational institutes (schools, universities), companies
Fiscal decentralisation in amateur arts in Latvia
395
(for example, banks), state institutions (for example, hospitals) and others. Also
the performing units established by other institutions can equally qualify for
receiving the state earmarked grant for the remuneration of the group leaders of
collectives.
The other option performing art units can do (and slowly start doing) towards
fiscal decentralization and more specifically towards deconcentration, is develop-
ing non-governmental sectors in the field of amateur arts. Analysis shows that the
majority of amateur art collectives are established and financed by municipality,
which is providing the basic needs – the premises and technical equipment for
rehearsals, costumes, sheet music and folk dance descriptions, the work remunera-
tion of the group leader, conductor and principal accompanist of a collective,
transport services in the time period between the Song and Dance Celebrations and
during the festival. More active and pro-active amateur art collectives have chosen
to raise additional funding through the third sector by establishing non-govern-
mental organizations (NGOs – associations, societies and foundations) for their
Table 3. Review of the annual financial reports of the non-governmental organizations
representing choirs and folk dance groups in 11 municipalities in 2011–2015, euros
Non-governmental organization Municipa-
lity
Founded 2011 2012 2013 2014 2015
Association “Diždancis” (folk dance
group)
Jelgava 2006 0 0 0 0 0
Association “Zemgaļi” (folk dance group) Jelgava 2011 129 1861 1956 4371 33
Association “Snēpeles pagasta deju
kolektīvs” (folk dance group)
Kuldīga 2011 0 5107 593 9075 2552
Kuldīgas dejotāju biedrība (Kuldiga
dancers’ association)
Kuldīga 2011 0 7884 18965 27873 5215
Association “TDA Banga” (folk dance
group)
Liepāja 2011 121 65 50 3090 2174
Association “Cēsu pils koris” (choir) Cēsis 2012 NA 0 0 7990 1645
Foundation “Koris Laiks” (choir) Liepāja 2012 NA 626 329 0 8150
Association “Atttīstības horizonti” (folk
dance group)
Alūksne 2013 NA NA 0 0 0
Cultural association “Raitais solis” (folk
dance group)
Cēsis 2013 NA NA 322 20529 818
Association “Sadancis” (folk dance group) Jēkabpils 2013 NA NA 142 8306 242
Foundation “TDA Lielupe” (folk dance
group)
Jelgava 2014 NA NA NA 0 0
Association “Pierobežas raksti” (folk
dance group)
Alūksne 2014 NA NA NA 9039 9442
Association “Tumes Solis” (folk dance
group)
Tukums 2015 NA NA NA NA 0
Association “JDK Zālīte” (folk dance
group)
Jūrmala 2016 NA NA NA NA NA
Association “Spriņģi” (folk dance group) Valka 2016 NA NA NA NA NA
Source: Research Centre of the Latvian Academy of Culture, 2017, www.lursoft.lv. Created by
authors.
Baiba Tjarve et al.
396
collectives (Research centre of the Latvian Academy of Culture 2015). The case
studies conducted in 11 municipalities also included identification of NGOs
established by the municipal choirs and dance groups. In 11 municipalities there
are in total 144 choirs and folk dance groups from which 15 groups (or 10 %) have
founded an NGO for their collective. 13 out of 15 NGOs are established by folk
dance groups.
Analysing the annual reports of these 15 NGOs, the authors can conclude that
only half of the NGOs are active since they were established and they have fund-
raised money every year. Three of the NGOs are new (established in 2015 or
2016) and their financial data is incomplete or not yet publicly available. There is
one very positive example – the folk dance group in Kuldīga (Kuldiga dancers’
association) whose NGO has been working since 2011 and has regularly raised the
funding that is larger than the state earmarked grant for the whole municipality of
Kuldīga.
In general the fundraising in these NGOs is not systematic – there are more
active years with donations or project grants raised, and the years where the only
income is from the membership fees (see Table 3 – less than 150 euros per year).
Some of the NGOs have not presented any activity during the years 2011–2015,
but none of the NGOs is closed up and that gives the hope about the possible
activity in the future.
6. Discussion and conclusions
The aim of the article was to assess whether and to what extent fiscal de-
centralisation applies to amateur art sector and particularly to those artistic groups
which maintain the process of Song and Dance Celebration (choirs and dance
groups) in Latvia. The authors used different data sets to analyse three aspects of
fiscal decentralisation in amateur art sector in Latvia.
The first concern of fiscal decentralisation in culture is a question whether
public funding is equally distributed for the sector. Analysis suggested that there
are several instruments on national level that endorse fiscal decentralisation. There
is a strong legislative framework to safeguard the tradition of the Song and Dance
Celebration, also defining the financial responsibilities of the government and
municipalities. The role of local authorities is strengthened by “The Law on Local
Governments” defining that the local governments have autonomous functions to
maintain culture and facilitate the preservation of traditional cultural values and
the development of creative folk activity. On a national level the process of the
Song and Dance Celebration is supervised and secured by the Latvian National
Centre for Culture which is a policy making body on a national level. Moreover,
there is a financial instrument on a national level which is highly appreciated in
public discourse. It is the state earmarked grant for the work remuneration of the
artistic leaders of amateur groups that take part in the process of Song and Dance
Celebration.
Fiscal decentralisation in amateur arts in Latvia
397
Even though there is a great number of municipalities in Latvia (119), very
diverse in their size and economic activity, in principle all municipalities have
equal possibilities to financially support local cultural activities, because the
system of financial equalisation procedure to assist financially weaker local
authorities has been functioning in Latvia since 1995 and in general the system is
evaluated as efficient. However, when we look at 11 case studies conducted in
different municipalities in Latvia, we see that support for amateur arts differ
significantly. Total budgets for culture and amateur arts in 11 municipalities in
2015 can vary between 0.2 and 1.2 million euros (see full budget information in
Appendix 1). Reasons for that can be different, including economic performance
of each municipality, personal priorities of local politicians, or divergent intensity
of cultural activities. Also authors have to take into account the fact that
administrations of 11 municipalities providing budget information could interpret
some budget items differently. Moreover, some municipalities included also
reconstruction costs of the infrastructure in the budget for culture and amateur arts
which could significantly increase the total amount of the municipality share (e.g.
Ludza). Differences in municipalities would require a particular attention and is
beyond the tasks set for this paper. This also means that amateur art groups need to
look for alternative funding sources to make the work of the group more sustain-
able.
The second aspect to assess fiscal decentralisation is the ratio between central
and sub-central authorities in the total public expenditure for amateur arts. The
authors conducted the analysis of the budgets of 11 municipalities in Latvia. From
the case studies we identified the proportion of the state subsidies, municipal
support and fund-raised amount from donations and grants for amateur art sector.
The analysis of results explicitly demonstrated the significant role of municipalities
in supporting amateur art. More than 90% of the budget for amateur art sector was
allocated from the municipal budget, the largest share of it was assigned to the
salaries. The state support for the salaries of leaders of the artistic groups
constituted a small share (the extent of the state grant for salaries forms only about
1–3% of the total budget for the amateur arts). Share of donations and grants is
also insignificant (4 municipalities have not fund-raised from other sources; 2
municipalities have raised additional funding amounting 1–4% of the total budget
for amateur arts in the municipality; 1 municipality in 2014 have raised additional
funding from donations and grants that is 9% of the total budget for amateur arts,
but this is an exception and does not give evidence about consistent work in
fundraising, as in the previous and following years the amount is less than 1%).
As the authors presumed that fiscal decentralisation also means assigning
public grant at the lowest administrative level (that means – municipality), it is
possible to observe fiscal decentralisation likewise in this respect. The ratio
between the central and sub-central authorities has largely inclined towards the
municipalities (more than 90% of the budget is subsidized by the municipalities
which have a decisive role in funding amateur art groups).
Baiba Tjarve et al.
398
The third and final aspect to assess fiscal decentralisation in the amateur arts
sector, is the deconcentration of public subsidies among different groups of
cultural producers. Analysis demonstrated that the majority of amateur art groups
are affiliated to municipality run cultural centres and that the municipality is the
main actor in amateur arts field. Amateur art groups which operate outside the
municipal cultural centres constitute only 10–15% of all amateur art groups in
years 2011–2015. Moreover, the authors took a closer look at choirs and dance
groups in 11 municipalities and tried to identify the level of civic initiative
establishing NGOs. In 11 municipalities there are in total 144 choirs and folk
dance groups from which 15 groups (or 10%) have established an NGO for their
group. Besides, the activities of the NGOs are generally deficient. The fundraising
which has been one of the main aims of these NGOs has occurred irregularly.
Some of the NGOs have not presented any activity during the research period
covered by this article (2011–2015), but none of the NGOs has been closed up and
that gives the hope about the possible activity in the future. Hopefully the number
of the NGOs of the amateur art groups will grow in time, as this is also a step
towards decentralization and may demonstrate a tendency of not relying only on
the public funding but showing also civic participation.
The authors presumed that fiscal decentralisation of amateur arts is a pre-
condition for sustaining the tradition of the Song and Dance Celebration in future.
As a result of the investigation, it can be concluded that public support for amateur
arts is fiscally decentralised and decisions are mainly taken at the lowest
administrative level, as the share of municipalities is about 90% of the total budget
for amateur arts. The support of state authorities is significant in terms of public
and political esteem, as the legislative setting strengthens and safeguards the
tradition of the Song and Dance Celebration. Although the division of competence
between the state and local governments meets the principles of decentralisation,
there is a tendency that the state entrusts new functions to the local municipalities
without the allocation of corresponding financial resources. This is demonstrated
by the considerable differences in the amounts each municipality assigns to the
amateur art sector. Finally, the authors have concluded that self-initiative and
bottom-up activities of individuals and amateur art groups are at insignificant
level, as the number and activity of NGOs and amount of fund-raised money is
deficient. The authors have also conducted a quantitative survey of individuals
taking part in amateur choirs and dance groups in 11 municipalities (the results of
the survey will be analysed in another research paper). The preliminary results
show that individual contributions are comparatively small, moreover, respondents
admitted that they are willing to pay only up to 10% of the total costs of the
amateur art group (Research Centre of the Latvian Academy of Culture 2017d).
Strengthening the non-governmental sector and individual financial contributions
for the amateur art would increase the level of decentralization and foster
sustainability of the amateur arts sector and the tradition of the Song and Dance
Celebration in the long term.
Fiscal decentralisation in amateur arts in Latvia
399
Acknowledgements
The research has been financially supported by the State Research Program
“Habitus: The Sustainability of Latvian Cultural Traditions in an Innovative
Environment” and the Research Centre of the Latvian Academy of Culture. The
authors are grateful to prof. Rūta Muktupāvela, prof. Anda Laķe and lect. Līga
Vinogradova for research assistance and all the kind support.
Address:
Baiba Tjarve
Research Centre
Latvian Academy of Culture
Ludzas iela 24
Riga
LV-1003, Latvia
E-mail: baibatj@gmail.com
Tel.: +371 29288580
Ieva Zemite
Latvian Academy of Culture
E-mail: ieva.zemite@lka.edu.lv
Kristine Freiberga
Latvian Academy of Culture
E-mail: k.freiberga@gmail.com
References
Central Statistical Bureau of Latvia (2016) “Culture centres at the end of the year”. Available online
at <http://data.csb.gov.lv/pxweb/en/Sociala/Sociala__ikgad__kultura/KU0040.px/?rxid=
cdcb978c-22b0-416a-aacc-aa650d3e2ce0>. Accessed on October 20, 2017.
Culturelab (2016) Kultūras auditorija Latvijā: situācija, procesi, tendences. Rīga: Culturelab. Avail-
able online at <https://culturelablv.files.wordpress.com/2017/01/kultc5abras-auditorija-
latvijc481-2016.pdf>. Accessed on October 20, 2017.
Daugavietis, Jānis (2015) Amatiermāksla Latvijā: kopienas attīstība un kultūrpolitika. Promocijas
darbs doktora grāda iegūšanai socioloģijā. Rīga: Latvijas Universitāte.
De Vries, Michiel. S. (2000) “The rise and fall of decentralisation: a comparative analysis of
arguments and practices in European countries”. European Journal of Political Research 38,
193–224.
Elkington, Sam and Robert A. Stebbins (2015) The serious leisure perspective: an introduction.
Abingdon: Routledge.
European Union (1992) Consolidated version of the Treaty on European Union. Available online at
<http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:12012M/TXT>. Accessed on
October 20, 2017.
Heiskanen, Ilkka (2001) Decentralisation: trends in European cultural policies. Strasbourg: Council
of Europe Publishing.
Hill, Elizabeth, Catherine O’Sullivan, and Terry O’Sullivan (2011) Creative arts marketing. London
and New York: Routledge.
Kawashima, Nobuko (2004) Planning for Equality? Decentralisation in cultural policy. Warwick:
Centre for Cultural Policy Studies, University of Warwick. Available online at <http://
Baiba Tjarve et al.
400
www2.warwick.ac.uk/fac/arts/theatre_s/cp/research/publications/centrepubs/ccps_paper_1.
pdf>. Accessed on October 20, 2017.
Latvijas Zinātņu akadēmijas Ekonomikas institūts (LZA EI) (2008) Dziesmu un deju svētki mainīgā
ekonomikas vidē. Rīga: LZA EI.
Lursoft – data basis of enterprises, register of companies’ annual reports. Available online at
<https://www.lursoft.lv/>. Accessed on October 20, 2017.
Martinez-Vazquez, Jorge, Santiago Lago-Peñas, and Agnese Sacchi (2016) “The impact of fiscal
decentralization: a survey”. Governance and Economics Research Network. Available
online at <https://www.researchgate.net/publication/278785364_The_impact_of_fiscal_
decentralization_A_survey>. Accessed on October 20, 2017.
Matarasso, Francois and Charles Landry (1999) Balancing act: twenty-one strategic dilemmas in
cultural policy. (Policy Note, 4.) Strasbourg: Council of Europe Publishing.
Ministru kabinets (2009) Noteikumi par plānošanas reģionu teritorijām. (Noteikumi, 391.) Available
online at <https://likumi.lv/doc.php?id=191670>. Accessed on October 20, 2017.
Ministru kabinets (2015) Kārtība, kādā pašvaldībām aprēķina un sadala valsts budžeta mērķdotāciju
māksliniecisko kolektīvu vadītāju darba samaksai un valsts sociālās apdrošināšanas
obligātajām iemaksām. (Noteikumi, 649.) Available online at <https://likumi.lv/ta/id/
277919-kartiba-kada-pasvaldibam-aprekina-un-sadala-valsts-budzeta-merkdotaciju-
maksliniecisko-kolektivu-vaditaju-darba-samaksai-un-val…>. Accessed on October 20,
2017.
Ministry of Culture of the Republic of Latvia (2014) Cultural Policy Guidelines 2014-2020
‘Creative Latvia’. Translated by State Language Centre, 2016. Available online at
<https://www.km.gov.lv/uploads/ckeditor/files/KM_dokumenti/CULTURAL_POLICY_GUI
DELINES_2014-2020_CREATIVE_LATVIA.pdf>. Accessed on October 20, 2017.
Pašvaldību konsultāciju centrs (2007) Pašvaldību finanšu izlīdzināšana: Latvijas pašvaldību finanšu
izlīdzināšanas sistēmas izvērtējums. 1. ziņojums – II daļa. Rīga: SIA PKC. Available online
at <http://www.raplm.gov.lv/uploads/filedir/pasvaldibas/pfi/pfi-1zin-2dala-latvija.pdf>.
Accessed on October 20, 2017.
Research centre of the Latvian Academy of Culture (2015) Focus groups ‘Nationwide Song and
Dance Celebration: problems and future scenarios’. Jelgava Focus group discussion
September 18, 2015 (9 respondents); Valmiera Focus group discussion October 2, 2015
(6 respondents); Kuldiga Focus group discussion September 25, 2015 (6 respondents);
Rezekne Focus group discussion November 11, 2015 (10 respondents).
Research Centre of the Latvian Academy of Culture (2017a) Excerpts from the budgets of local
governments: funding for the culture and amateur arts: Alūksne, Balvi, Cēsis, Jelgava,
Jēkabpils, Jūrmala, Kuldīga, Liepāja, Ludza, Tukums, Valka.
Research Centre of the Latvian Academy of Culture (2017b) Excerpts from the budget of the Latvian
National Centre for Culture: funding for the amateur arts.
Research Centre of the Latvian Academy of Culture (2017c) Annual financial reports of the non-
governmental organizations representing choirs and folk dance groups in 11 municipalities.
Research Centre of the Latvian Academy of Culture (2017d) The survey about the financial
contribution of the participants regarding the participation in choirs and folk dance groups in
11 municipalities.
Saeima (1994) Likums “Par pašvaldībām”. Available online at <http://www.likumi.lv/doc.php?id=
57255>. Accessed on October 20, 2017.
Saeima (1998) Likums “Par pašvaldību finanšu izlīdzināšanu”. Available online at <https://
likumi.lv/ta/id/47361-par-pasvaldibu-finansu-izlidzinasanu>. Accessed on October 20, 2017.
Saeima (2005) Dziesmu un deju svētku likums. Available online at <https://likumi.lv/doc.php?id=
111203
Saeima (2015) Pašvaldību finanšu izlīdzināšanas likums. Available online at <https://likumi.lv/
doc.php?id=274742>. Accessed on October 20, 2017.
Tjarve, Baiba, Ieva Zemite, Kristine Freiberga (2017) “Rethinking the Role of Public Incentives for
Amateur Arts”. The International Journal of Interdisciplinary Cultural Studies 12, 1, 1–13.
Fiscal decentralisation in amateur arts in Latvia
401
Available online at <http://ijicst.cgpublisher.com/product/pub.268/prod.97>. Accessed on
October 20, 2017.
Treisman, Daniel (2007) The architecture of government: rethinking political decentralization. New
York, Cambridge: Cambridge University Press.
UNDP, German Federal Ministry for Economic Cooperation and Development (1999) Decentraliza-
tion: a sampling of definitions. New York: United Nations Development Programme.
Available online at <http://web.undp.org/evaluation/documents/decentralization_working_
report.PDF>. Accessed on October 20, 2017.
Villarroya, Anna (2015) Basic on active arts participation policies: objective, mechanisms, sources
and common tendencies in Europe. (European Network on Cultural Management and
Cultural Policy Education, 3.) Available online at <http://site.transit.es/encatcscholar/?p=
710>. Accessed on October 20, 2017.
Work, Robertson (2001) “Decentralization, governance, and sustainable regional development”. New
Regional Development Paradigms 3, 2–34.
APPENDIX 1
Table 4. Financial overview: Funding for culture and amateur arts in 11 municipalities over
years 2011–2015, euros
2011 2012 2013 2014 2015
Alūksne Municipality budget 312081 332318 453371 443181 498286
State earmarked grant
for remuneration 0 12654 12868 13542 12274
Fund-raised money
(donations, other grants) 7010 675 697 0 1500
Total 319 091 345 647 466 936 456 723 512 060
Balvi Municipality budget 331378 343057 387817 379141 396079
State grant 0 8735 9196 10478 32221
Fund-raised money 0 0 142 0 0
Total 331 378 351 792 397 155 389 619 428 300
Cēsis Municipality budget 99989 100389 233179 338162 320571
State grant no data no data no data no data no data
Fund-raised money 0 0 500 0 3300
Tot al 99 989 100 389 233 679 338 162 323 871
Jelgava Municipality budget 769954 981610 1068123 1274450 1187084
State grant 0 16348 16354 18440 17027
Fund-raised money 11931 2562 35216 9856 33111
Tot al 781 885 1 000 520 1 119 693 1 302 746 1 237 222
Jēkabpils Municipality budget 223905 249816 374659 328908 305380
State grant 0 0 7238 6051 7106
Fund-raised money 5174 0 5130 10360 13810
Tot al 229 079 249 816 387 027 345 319 326 296
Baiba Tjarve et al.
402
2011 2012 2013 2014 2015
Jūrmala Municipality budget 452832 532402 730212 680180 824480
State grant 0 5865 5528 6955 7531
Fund-raised money no data no data no data no data no data
Tot al 452 832 538 267 735 740 687 135 832 011
Kuldīga Municipality budget 199514 208421 235003 256658 254187
State grant 0 6496 4819 5255 5636
Fund-raised money 400 5376 400 26011 2870
Tot al 199 914 220 293 240 222 287 924 262 693
Liepāja Municipality budget 147276 118495 240649 200638 193384
State grant 0 12595 15091 16583 14535
Fund-raised money 1800 3700 600 11000 4750
Tot al 149 076 134 790 256 340 228 221 212 669
Ludza Municipality budget 598122 256327 289290 292387 559471
State grant 0 6442 13097 6339 6460
Fund-raised money 0 0 0 0
0
Total 598 122 262 769 302 387 298 726 565 931
Tukums Municipality budget 407132 459466 622767 513726 537351
State grant 0 9335 9094 11520 12597
Fund-raised money 20207 3074 0 1840 0
Total 427 339 471 875 631 861 527 086 549 948
Valka Municipality budget 271270 311452 353480 366124 371346
State grant 0 2948 2950 3746 5814
Fund-raised money 0 100 2180 5192 3041
Total 271 270 314 500 358 610 375 062 380 201
Source: Research Centre of the Latvian Academy of Culture, 2017. Excerpts from the budgets of
local governments - Alūksne, Balvi, Cēsis, Jelgava, Jēkabpils, Jūrmala, Kuldīga, Liepāja, Ludza,
Tukums, Valka. Created by authors
