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Performing Arts: Critical Governance Issues

A Damodaran, 2018
2018
Working Paper No
571
Body

This study was undertaken with assistance provided by IIMB through a Seed Money Grant for the period from 2013-16. The focus of the project was to work on the following aspects relating to select classical dances and theatre forms from India.

The objectives of the project are as follows:

Delineating the economic and governance models of managing theatres of classical performing arts in India
Understanding the ways and means of valuing Cultural  and Intellectual  Property Heritage of Classical Performing Arts Theatres of India including the creative capital  of artistes of classical performing arts in India Testing the  theoretical insights developed in Cultural Economics to the Classical Performing arts theatres in India
Identify gaps that would be instrumental in providing the contours of a Arts and Heritage Management Policy for India.
Bridge the gap in knowledge of the economics of valuation of Cultural and Intellectual Heritage of classical performing arts theatres with reference to four cases of dance forms viz., Kathakali, Koodiyattom, Krishnanattom and Kuchipudi.

The first objective required the researcher to delve into traditional and modern, evolving governance methods adopted by theatres studied. This led to development of inferences regarding the models of theatres for classical performing arts in respect of the four classical performing arts mentioned. The second objective had deeper implications as far as research was concerned. Demand based tools of valuation based on Willingness to Pay had to be worked upon in addition to supply driven techniques involving economic modes of revenue generation and revenue deployment (Public funding and performance as variable revenue). Both methods entailed exploration of IP assets owned, inherited by the theatres in the shape of symbols and logo, heritage materials, data/ information as well as use of modern IP devices such as Trade Marks, Copyrights and Digital Data base Protection methods. The third objective  entailed Investigating the patterns of theatre management in terms of governance model (trusts, societies, public institutions and/or quazi -corporate  entities) and  decision making systems, cultural policy interface and resource allocation and deployment systems (including artiste compensation systems). This objective is to test the propositions of Baumol et al (1966) regarding ‘cost disease’ and Caves (2002) regarding contract design between arts and commercializing agents to achieve upstream value realization. The last objective involved analysis based on regression results from the data collected from field surveys.

 

The findings of the field surveys indicate the following:

All the organizations studied by us are either trusts or societies involving the play of closed controlling interests.
The field surveys also indicate that none of the organizations surveyed had an IP policy though they have intellectual assets in the form of choreographic pieces and old documents carrying performance records.
The absence of an IP policy and the absence of a sustainable financing system are seen to be major gaps that need to be addressed by India’s Arts and Heritage Management Policy.
The final finding is that the traditional tools of preference/willingness to pay need to be re-tuned when applied to the Indian Arts. Qualitative variables are significant when it comes to willingness to pay studies in relation to performance arts.

Key words
ance forms, Intellectual Property, Valuation, Theatre, Trust and Societies, Willingness to Pay

Performing Arts: Critical Governance Issues

Author(s) Name: A Damodaran, 2018, 2018
Working Paper No : 571
Abstract:

This study was undertaken with assistance provided by IIMB through a Seed Money Grant for the period from 2013-16. The focus of the project was to work on the following aspects relating to select classical dances and theatre forms from India.

The objectives of the project are as follows:

Delineating the economic and governance models of managing theatres of classical performing arts in India
Understanding the ways and means of valuing Cultural  and Intellectual  Property Heritage of Classical Performing Arts Theatres of India including the creative capital  of artistes of classical performing arts in India Testing the  theoretical insights developed in Cultural Economics to the Classical Performing arts theatres in India
Identify gaps that would be instrumental in providing the contours of a Arts and Heritage Management Policy for India.
Bridge the gap in knowledge of the economics of valuation of Cultural and Intellectual Heritage of classical performing arts theatres with reference to four cases of dance forms viz., Kathakali, Koodiyattom, Krishnanattom and Kuchipudi.

The first objective required the researcher to delve into traditional and modern, evolving governance methods adopted by theatres studied. This led to development of inferences regarding the models of theatres for classical performing arts in respect of the four classical performing arts mentioned. The second objective had deeper implications as far as research was concerned. Demand based tools of valuation based on Willingness to Pay had to be worked upon in addition to supply driven techniques involving economic modes of revenue generation and revenue deployment (Public funding and performance as variable revenue). Both methods entailed exploration of IP assets owned, inherited by the theatres in the shape of symbols and logo, heritage materials, data/ information as well as use of modern IP devices such as Trade Marks, Copyrights and Digital Data base Protection methods. The third objective  entailed Investigating the patterns of theatre management in terms of governance model (trusts, societies, public institutions and/or quazi -corporate  entities) and  decision making systems, cultural policy interface and resource allocation and deployment systems (including artiste compensation systems). This objective is to test the propositions of Baumol et al (1966) regarding ‘cost disease’ and Caves (2002) regarding contract design between arts and commercializing agents to achieve upstream value realization. The last objective involved analysis based on regression results from the data collected from field surveys.

 

The findings of the field surveys indicate the following:

All the organizations studied by us are either trusts or societies involving the play of closed controlling interests.
The field surveys also indicate that none of the organizations surveyed had an IP policy though they have intellectual assets in the form of choreographic pieces and old documents carrying performance records.
The absence of an IP policy and the absence of a sustainable financing system are seen to be major gaps that need to be addressed by India’s Arts and Heritage Management Policy.
The final finding is that the traditional tools of preference/willingness to pay need to be re-tuned when applied to the Indian Arts. Qualitative variables are significant when it comes to willingness to pay studies in relation to performance arts.

Keywords: ance forms, Intellectual Property, Valuation, Theatre, Trust and Societies, Willingness to Pay