From Theory to Practice of Economic Regulation: Ten Theses on the Draft "Law on Culture"

Ohe paper proposes the concept of economic regulation in the sphere of culture, representing combination of four main institutions: institution of differentiated budget performance standards, that characterize the minimum share of spending on culture in the budgets of all levels that enforce to ensure compliance with state obligations to consumers of cultural goods and cultural workers; institution of individual budget allocations ("percentage philanthropy"), which provides a direct participation of citizens in budget allocation, choosing areas of spending of a small part of the state income tax; institution of marked taxes, providing a direct referral into the cultural sphere of revenues from specific taxes and fees; institute of endowment funds, allowing to accumulate revenues from marked taxes and individual budget allocations, in order to derive an increasing current income from the endowment going to support cultural activities in the form of competitive grant funding. The proposed system of economic regulation of cultural activities can be seen as a model for all kinds of patronized goods. With a certain adaptation to the specific conditions of the functioning of science, education and health care, it can be the basis for appropriate institutional reforms.