Financial crisis' doom scenarios

Each day, we get mixed reports on the current financial crisis. Though with frequent intervals, the major world's stock markets close with a plus, to be followed by another day in the minus. A roller coaster ride it is. As economy is not only a matter of money, it is mostly (if not: always) lead by... emotions. The major given for investors to decide whether to invest or to pull out is their trust in the business. A slight hiccup and a profitable business can turn bankrupt almost overnight.

As the news on the crisis goes on, the first waves of redundancies were detected, alas. Economical analysts give their views - sometimes totally contradictory - making them mere fortune-tellers looking at their magic crystal, adding oil on the fire of the said people's emotions.

In such a scenario, we tend to become cautious; keep our purse closed. Not just in the individual households, but also fundraising and sponsoring is visibly affected. Music and arts in general are as if squeezed out even more than before. A logical consequence? Perhaps not: We all know how in 1945 Europe lay in ruins. People's first priority was to survive. Living among rubble, not knowing where to get food to make it to the next day. And yet, in those times it was e.g. that the Salzburg Festspiele was reboosted. The post-war era was the time, where our present-day big-and-famous orchestras were (trans)formed into beacons of fame and wealth.

Fortunately, we are not living in ruins in Europe at this moment, we are just panicky, because financial institution greedily were selling their credits in order to earn their bonusses, found out that in their greed they have uncontrollably created a soap-bubble which has burst now. We will get out of it - in fact, it's their problem to solve it. In the meantime, let us remember what new opportunities were launched just after 1945. Let's try to give arts a new accelleration again. We did it before, and why shouldn't it work now. It's all a matter of emotions.

MS

Culture in crisis (II)

The news goes on - stocks exchanges all over the world go up-and-down. A roller-coaster ride so to speak, which is definitively not a pleasant one (especially for those at the bottom of the ladder).

What intrigues me is this; when I apply for a mortgage or a credit, my bank is poking into my private life, trying to find out every single detail, to assure them that I will be able to pay them back (plus all the extra fees, interest rates and all). I have to meet certain criteria - what assurance is it that I have a contract now, while my boss can get bankrupt by next week anyway? - well, so be it.

When we apply for a concert project to the Ministry of Culture (government)!), we need to prepare the most irrelevant paper work and requirements (even submit proof of insurance of the individual musicians). Yet what we get is sometimes just small fraction of the needed budget.

Now the banks are in trouble; but governments pump in billions of Euros - and against what assurance? None? So bank-managers are at least able to get their millions in bonuses paid. Great; what a relief!!! I was already getting worried that they were not able to afford their Bahama Christmas this year.

Aren't we becoming a part of a bizarre Kafka plot? So far one good thing has happened - Last month, the Culture Ministry increased the own contribution from 5% to 15%, giving several ensembles a death-blow. Last Friday, due to this crisis, the Ministry has decided to reverse this decision. Whether the remaining projects would still be feasible is still to be seen.

MS

What is the last drop?

Readers of my blog have noticed my regular reports on the slow liquidation process of the Symphony Orchestra of the Slovak Radio (SOSR). And although I am by nature quite a positive person, ready to take up any challenge, the analysis was quite pessimistic ... unfortunately as I must admit. Nevertheless, the story doesn't end here. Slovakia - as a cultural platform is small, and Bratislava therefore even smaller. The trend of the SOSR is not exclusively confined within its walls - it is equally found in other institutions like the Slovak Philharmonic as well as the National Opera.

Why should we bother? All these institutions are public ones: By law, such institutions are obliged to give public access to their decision-making, their financial health, etc. In reality? As a tax-payer, who is interested in e.g. the sudden sacking of person A or B, I am not able to get in touch with any person of the administration, let alone the management responsible. If all would go smoothly, I would hardly bother... the fact that things are far from smooth, it causes not just simple frowning. And many around me agree. We are not just talking of petty, trivial mishaps; the news that comes out from these institutions from first hand sources (insiders) is indeed very alarming. Neither of the said organisations is being managed with a vision. It's lacking strategy and yet vast streams of money (my tax money!) is thrown into a deep pit.

To a certain degree, I could understand if in emergency cases one hires an befriended colleague - also that this could cause some nasty remarks from other colleagues. Yet if it is shrouded in mystery, and everybody refuses to explain and continuously trespasses laws and regulations - then it is becoming obviously very fishy.

Would the responsible Ministry not intervene in such a situation? Ah yes, it should but it doesn't. Lately a Ministry official stated, that Bratislava's Musica Aeterna baroque ensemble is not to receive money for a project, since the Ministry is "already spending much for early music... " But where then? To the Philharmony. For years we already accept in the West the knowledge that early music is not to be played like a bombastic Richard Wagner performance (no offense to Wagner intended). Yet, the Ministry's point of view is that the Philharmonic should perform Baroque music. Like the Health Ministry will abolish Orthopedic departments and, when breaking a leg, would advise you to visit a Cardiologist who - according to them - is equally qualified to help you.

Not only the Ministry thus proves herewith to have completely incompetent decision makers (not understanding their own field of responsibility, for how credible is one with such a point of view), the incompetence of the managements of the aforementioned institutions - despite of trespassing the national laws by their arrogance of refusing to react to repeated appellations of the public to give account of their behaviour adds up to the growing disbelief on the current developments. How far should this continue? Till all orchestras are completely dissolved and forgotten? The Slovaks, instead of treasuring their talent, turn away. Don't care. The talented ones disappear abroad and what can Slovakia still truly be proud of to show off to the world? Favouritism, mediocrity and ignorance seem to rule.

MS

Historic lessons...

Driving my car to the city centre, while the sun is rising and the morning-dew is still lingering on the vineyards on the mountain slopes. The gorgeous almost idyllic sight is not the only thing that makes me feel good. I am listening to the radio, I hear the news that Barack Obama has won the elections. A historic moment, which I definitively welcome with a big sigh of relief.

Why is this event, for a culture-person as I am, of any significance? It's not just thinking of being a global cosmopolitan world citizen. There's a bit more to it:

First of all, it is the awe, to witness that a nation, which has known segregation still back in the 1960s (remember reverend Martin Luther King?) has had the courage to vote en masse for a coloured politician to become its president. This fact should definitively not be overlooked. While Hillary Clinton, as women-politician, was not able to make it to receive her nomination as persidential candidate, Barack Obama made it to the very end. And I must admit, fearing that perhaps old prejudices or political apathy would prevail at th every last moment during the elections, I was a bit surprised. The bottom line was; the people want change. It was still a change against a failing republican Bush administration, but a change that overcame those very prejudices and apathy to vote. This was not "too close to call" as in the unfortunate and dubious election results of 2000, this was a massive landslide victory!

Why it made my day, this very morning while driving to town? Well, although America has lost its glamour for me a long time ago, it still maintains a considerable influence in world happenings. And many do see it as an example. Going back into history, the pride of this nation lies concentrated in its Declaration of Independence. How unique it may seem, it was a rough copy of the Seven United Provinces of the Netherlands, who declared itself separated in 1581 from the tirannical rule of their Spanish monarch Philips II. The conclusion was, that if a ruler abused his power, the people were having the right (if not being their duty) to leave his rule. And thus it happened in 1776 as well, as the American colonies severed all political ties from the British motherland. And the patriotic Americans recite this Declaration of Independence by heart ... with pride.

You might ask yourself by now: what is he talking about on this culture blog, so back to my business: as cultural institutions sigh and moan under the hanging sword of Damocles - because of governments not wanting to support, and many feel the threat of being abolished - why staying then so passive? We have a job, if not a profession (in an art gallery, orchestra, museum,...) and it is a contribution to the society as a whole. If we feel that we're not able to breathe any longer because of dried-up funding, why not get out of the lamenting-mood and vigorously lobby to convince politics of our right to exist? After all, it is our money they subsist on. We elected them, we pay them. If we want a change, then we have the right to say so. It is us that are the initiators of change, and perhaps not the politicians after all.

MS

Culture in crisis

For a considerable time, we are witnessing some panic in the financial sector, which has slowly but steadily spread its tentacles to other fields. Starting in the US - the land of the free entrepreneurial spirit - one could argue that it has the rest of the world in its grip. True, here and there we see the stock markets ending in the plus range, but it is still a brittle situation.

Why writing about the financial crisis, when my biggest chunk of work is related to music and culture? Not just because culture needs money as well (as does everything in life). For decades, we have discussions on financing culture, and especially; who has the responsibility for culture?

Culture is, generally speaking, an aspect of society. We can look at it from an angle where national, traditional, therefore a part of our own identity. When approaching it from the point of view that it is a mere luxurious form of entertainment, it appears to be perhaps obsolete. Whichever way we take it; the society itself as a group is involved some way or another.

Society has gone a long way of evolution; starting at a tribe-level, most people still had to be multi-functional in order to survive as a group. In more complex societies - as is ours nowadays - most of us have specialised functions: With a few exceptions, we all have just one job and have delegated other services to others.

While we have ever since the Middle Ages delegated activities like keeping order (police), protecting against an enemy (army), ruling (politicians), the trend since the industrial revolution has become such, that we would preferably move away from state intervention (Laissez-faire). We have slowly made acquaintance with words like "Corporate Social Responsibility" and even "Corporate Cultural Responsibility," where enterprises slowly begun financially supporting hospitals, welfare programs or sponsor orchestras. Indeed a true sign of less State and more enterprises in our every day life.
Interestingly enough, the Bush administration, as a staunch supporter (if not the most staunchest ever) of free entrepreneurship and withdrawal of government involvement into economics, has suddenly pumped in billions and billions of dollars in order to save banks from collapsing.

Is this thus an implicit sign, that free economics has exceeded its borders (again: starting at the very centre of free market economy - Wall Street) proving that it was just a huge bubble, and where suddenly we became alarmingly aware of the fact (including the Bush administration), that government (state) is still the main responsible for society?

The main question in my mind, and I would very much appreciate to receive your comments on who do you think is in fact ultimately responsible for maintaining culture as an integral part of society: Politics or Companies?

MS