1. THE ARTS AND THE WEALTH OF
NATIONS: THE ROLE OF THE STATE
John O’Hagan
Trinity College Dublin, May 2012

2. Outline of Talk
Five separate ‘wealth’ benefits
1. National/Regional Identity
2. Social Cohesion/National Prestige
3. Experimental/Innovative Work
4. Option Demand for Future Generations
5. Economic spinoffs

3. Wealth Benefit 1: National/Regional
Identity
• The arts contribute to National Identity; ipso facto the
State should fund the arts
• All benefit hence all should pay, through the State
• But, concept of national identity can be divisive and
exclusive (Zolberg)
• Arts do not contribute to national identity, at least no
more than sports, media, religion, etc (Globerman)
• National identity though can contribute to a sense of
belonging, social cohesion and mutual understanding
• And the arts can play a crucial role in this: but so can
other activities

4. Wealth Benefit 2: Social Cohesion and
Prestige
• Connected to Argument 1
• ‘The arts, especially drama, one of the principal means by
which a society binds itself together and transmits it beliefs
and standards from one generation to another’ (Weil)
• But, this social ‘glue’ role can be, and is, played by mass
media, religion and commercial arts as well (Weil again)
• Linked also to national prestige or sense of well-being
• Arts critical to this: ‘few people would be happy if their
country became known abroad as a cultural wasteland, a
nation in which Mammon had put beauty and art to rout’
(Baumol and Baumol)

5. Wealth Benefit 2: Social Cohesion and
Prestige (continued…)
• Continued from previous slide
• As with wealthy individuals: arts patronage used as a
symbol of success
• But this applies also to sports such as horse racing or
football or golf
• National prestige not necessarily linked in any way to
identity
• Linked though to social cohesion
• Besides, distinctive ‘Irishness’ often the key to national
success and prestige: and the arts unique in this respect
(e.g. Irish literature, historic monuments)
• But, this does not imply necessarily a role for state funding:
unless it also enhances social cohesion

6. Wealth Benefit 3:
Experimental/Innovative Work
• An agent for change with regard to established authorities,
values, institutions and truths (Weil)
• Part of general innovative, or R&D function
• Many benefits for example to commercial TV/film from live
drama
• Concert hall and theatre, orchestras and drama groups, the
‘laboratory’ for composers and playwrights
• These also a ‘testing’ ground for new performing talent for
commercial sector

7. Wealth Benefit 4: Option Demand for
Future Generations
• Applies with particular force to built heritage and
museums
• Once destroyed not available for future generations;
present generation may be prepared to pay for its
preservation
• But what is benefit to future generations? Rests
fundamentally on earlier national identity/distinctiveness
argument
• And national identity a public wealth benefit, and should
be funded by state

8. Wealth Benefit 5: Economic
Spillovers’
• State monies devoted to employment creation; why not in
the arts as well?
• Direct employment: not special
• Tourist attraction (e.g. Temple Bar, literary trails, heritage)
• Key contributor to creative city concept (Florida); spin-offs
for other employment
• But, sports facilities (e.g. good golf clubs) or nature (e.g.
Killarney) or good pubs/restaurants play same role?
• Also, commercial arts: West End, Temple Bar, Rock concerts

9. Wealth Benefit 5: Economic
Spillovers’ (continued…)
• Continued from previous slide
• Unique and distinctive nature of the state arts though
might be the ‘key’: golf can be played anywhere?
• Hence no conflict necessarily between the national identity
and economic spillover roles in practice

10. Concluding Comments
• Distinction between private and public wealth benefits
critical
• Latter outlined above, with the main emphasis on possible
national identity benefits
• Existence of such benefits not really disputed; key issue is
the scale of these
• Distinction between commercial and state arts sectors also
important
• Former like any business sector but may have economic
spill-over effects, like for example IT sector
• Hence key part of industrial and tourism policy