ABSTRACT
This chapter starts by reminding readers that, for most of human history, art happened without any input (financial or advisory) from modern-style arts development agencies. Wealthy patrons supported professional artists, some of whom worked to standards unlikely ever to be surpassed. Wealthy people with artistic aptitude made art for fun. Poor people made their own amateur or “folk” art, having no spare money with which to buy from professionals. Some arts industries have been operating for centuries (theatre, musical performance, publishing for instance), on a risky but sometimes very profitable commercial basis. With so much so obviously possible without government arts funding—and so much still going on—what do funders think they can achieve by getting involved?
The chapter suggests the use of a simple matrix to illustrate funded organizations’ very different degrees of dependence on government arts funding once it becomes available: the grant dependency matrix. It suggests that funders can pump their money into any or all of four different types of arts economy: new; old and stable; declining; and command. Different types of funding system intervention are likely to be needed to achieve worthwhile results in different economic contexts.
