Executive Board 21 October 2013 – Item 8 Paper A refreshed approach to international work For Date Agenda item Presented by Authors Attachments Executive Board 21 October 2013 8 Nick McDowell Nick McDowell and Nicola Smyth Appendix One: Budget proposal 2014/15 – 2017/18 1. Purpose 1.1 This Autumn, the Arts Council publishes its refreshed ten-year strategy to 2020, Great Art and Culture for Everyone. The refreshed strategy describes our aspirations to support cultural exchange, so that the best of international arts and culture is being enjoyed regularly by the public in this country, and the best of our arts and culture finds new audiences from overseas. This paper sets out in outline, how we propose to make this happen. It seeks EB support for the current direction of travel in order for staff to prepare more detailed work on specific programmes. 1.2 The principles and ambitions expressed in this paper have been evolving over the last few months since the appointment of the Arts Council’s first International Director. In the last few weeks, a source of lottery funding to support the delivery of many of them has emerged in the form of a rebate from the Olympic Lottery Distribution Fund (OLDF). The Secretary of State and our National Council have agreed in principle that £18m of this rebate is to be spent on organisations working internationally, with an emphasis on cultural export. This paper sets out in headline terms how the £18m might be allocated. 2. Recommendations 2.1 Executive Board is asked to: (a) Discuss and comment on the refreshed approach set out in sections 5-10 (b) To comment on the priorities identified for investing £18m of OLDF money in sections 6-8 and appendix one (c) Agree specific budget proposals for Re:Imagine India and AIDF in section 7 and appendix one (d) Agree next steps as set out in section 12 Page 1 of 11 Executive Board 21 October 2013 – Item 8 3. Implications Arts Council Mission, Objectives and Values Staffing Finance and business support These proposals contribute to Achieving Great Art and Culture for Everyone, addressing all five goals to some extent but particularly goals one and three. The proposals promote and enact our collaborative approach – our ambitions in the international arena will only be achieved through successful partnerships (British Council, UKTI, IFACCA, BFI, and others). These proposals, if agreed, are likely to require additional engagement by staff. SRMs and RMs will need to extend their involvement from the two current international schemes (Tier One Exceptional Talent and Promise; AIDF) to work with the Cultural Contact Point from 2014, and to assess applications for Strategic funding (export, exchange and showcasing). If, as we propose, International work is referenced in funding agreements where appropriate, there will be additional monitoring and riskmanagement requirements. And inevitably the roll out of any new strategic funds will have an impact on the Investment Centre. Advocacy, partnership-building and pursuing EU opportunities will all require staff time. We will need to monitor the impact of this extended international programme on the workload of all staff involved. The majority of the proposals would be funded with lottery money via a rebate from the Olympic Lottery Distribution Fund. We have agreed with DCMS in principal to earmark £18m of the £21m rebate as a cultural export and exchange fund. We are permitted to spend lottery money on international work so long as it benefits arts organisations and audiences in the UK in some way (in some cases the benefit will be deferred). Predominantly, it is by making those organisations stronger and by investing in their resilience through the chance to trade abroad and fundraise abroad. The exchange elements of the programme will also benefit English audiences by bringing leading international artists to this country to create and present work. In designing the programme, we will need to ensure that it complements, rather than replaces, the work of organisations like the British Council and UKTI. We will also need to design it in such a way that it doesn’t simply subsidise companies that can already afford to tour internationally. Page 2 of 11 Executive Board 21 October 2013 – Item 8 Communication Legal Equality and diversity Environmental impact Our refreshed approach to international work will be of consequence to our strategic partners – British Council, UKTI, BBC (re The Space). We will work within the spirit of our MoU with the British Council, sharing our approach with them before we make it public. These proposals are relevant to our NPO and MPM organisations and propose encouraging these organisations to be explicit about the artistic and resilience elements of their international activity. We expect some funding agreements for 2015/16 onwards specifically to reference international outcomes. We will consider opportunities to include specific questions relating to international work in the annual survey of funded organisations. We already use British Council staff as expert advisers and commenters on the AIDF programme. Some of these proposals will extend that principal and we will need to clarify how close to the decision process they can be as partners, without infringing our legal accountability for the distribution of lottery funds. Creating a strengthened environment for arts and cultural organisations to work internationally will help us to deliver the Creative Case through an exchange of diverse work, practice, influences and ideas. It also supports the import of more diverse work for English audiences. This strategy does involve international travel for artists and cultural organisations. However, it also aims to significantly enhance digital delivery and digital showcasing for artists on an international platform, which could have a positive impact in reducing the carbon footprint. 4. Background 4.1 The 2008 McMaster Review asked ACE, the British Council and DCMS to “work together to investigate and implement an international strategy that stimulates greater international exchange, brings the best of world culture here and takes the best of our culture to the world”. 4.2 London 2012 was an international showcase for the best of English arts and culture and created the platform for refreshed ambitions. 4.3 ACE’s settlement letter from DCMS for 2015-16 includes five priority areas, one of which is focused on international work: “Supporting international cultural exchange and building relationships which help develop the culture sector in this country and assist export promotion in that sector, as well as contributing to England’s image abroad, including through the Page 3 of 11 Executive Board 21 October 2013 – Item 8 GREAT campaign.” 4.4 We believe that international working is important to the health of the English arts ecology and economy. Through the MOU with the British Council, ACE has agreed to: - Advocate the value of internationalism to the English arts sector and contribute to critical and policy debate on the arts and internationalism Support international exchange, helping artists and arts organisations to see the connection between local and global Encourage international artists, producers and curators to make and show work in England Stimulate international touring by English organisations (recognising the value of the business resilience which can result) These principles will also apply to work across our wider cultural footprint. 4.5 ACE’s refreshed strategy document foregrounds two main ambitions for its international work. The first is to ensure that the best of our artists and cultural organisations are working overseas more regularly than at present, and that the best of international arts and culture is being enjoyed by audiences here (Goals one and two). The second is to work with our partners to ensure that our artists and organisations develop new markets and mechanisms for export and distribution (Goals two and three). 4.6 Our newly refreshed strategy also reflects our wider responsibilities to work across a broader cultural footprint. Museums in the UK have the most international-facing collections of any in the world - not just in our larger national institutions, but in many regional and local museums. There is evidence of growing international demand for the touring of our collections, particularly into those countries from which they originate. 5. Our starting point 5.1 Our international policy approach will focus on the key principles of export growth and cultural exchange, and the role played by partnership in enabling us to deliver on those ambitions. 5.2 We already support a wide range of international activity through our NPO and MPM portfolio: we fund touring of artistic work and collections, partnerships and co-commissions, residencies and exchanges. Some of this international work is also funded through Grants for the arts. Over the coming period, we will gather Page 4 of 11 Executive Board 21 October 2013 – Item 8 and disseminate data evidencing this work so that we can advocate for and raise awareness of our work to date. 5.3 The rapid development in digital technologies presents huge opportunities to reach out to and engage new audiences both at home and abroad. It offers entirely new ways in which to approach export growth and cultural exchange. 5.4 Our own recent SWOT exercises have revealed the differences in opportunities for international work across the country. Relationships are often as much about the interplay between cities as they are about nation-states. We need to decide how we give space on the world stage to rural voices alongside urban ones; how we celebrate regional differences as well as the culture of the conurbation. 5.5 The DCMS has clearly signalled its focus on the export market for our cultural product. There is much work already taking place by and with the BC, UKTI and others. But we believe that far greater returns could be unlocked by further investment of funding through the Arts Council which would help to grow significantly the market for English arts and cultural work abroad. 5.6 The DCMS will return to us up to £21 million from the Olympic Lottery Distribution Fund, of which £18m has been ring-fenced by agreement between our National Council and the DCMS for cultural export and exchange. We have put to DCMS, and to our National Council, some initial ideas - around increased support for touring, showcasing, digital distribution and exchange – and will develop these over the coming months. 6. Export 6.1 Overview OUT OF SCOPE 6.2 A more strategic approach to international showcasing OUT OF SCOPE Page 5 of 11 Executive Board 21 October 2013 – Item 8 6.3 Export Growth through new initiatives 6.3.1 Cultural Calendar OUT OF SCOPE 6.3.2 CYP and exports OUT OF SCOPE 7. Exchange 7.1 The importance of cultural exchange OUT OF SCOPE 7.2 Artists International Development Fund (AIDF) 7.2.1 This scheme was established in 2012 and is jointly run with the British Council. Evaluation feedback to date suggests it has been hugely valued by the sector. But the success rate is low (currently 10 per cent) and the running costs proportionately very high. The criteria for the fund are narrow at the moment: feedback has raised issues around the exclusion, for example, of formal residency schemes. Round Five of AIDF (which closed on 4 October) is being run through GftA Lane One for the first time, which will bring down the administrative cost per grant. 7.2.2 We believe that additional resource is needed to open up the criteria and increase the success rate. The British Council is willing to increase co-funding and has offered an additional £220,000 in 2013/14. 7.2.3 We hope to increase the overall budget for AIDF to £1m per year for 2014/15 and the following three years. The ACE 50% would come from the OLDF rebate, and we will ask the British Council to match this figure. Page 6 of 11 Executive Board 21 October 2013 – Item 8 Recommendation: For now, we specifically request approval for an additional £220,000 for the first round of 2014/15, to match the £220,000 offered by the British Council for the final round of 2013/14. 7.3 Visas – promoting exceptional talent and promise 7.3.1 ACE has a relatively new role as a gateway for international artists seeking to come here with our appointment as one of the Home Office’s Designated Competent Bodies, endorsing or rejecting Tier One Visa applications. This role expanded on 1 October 2013 as the current Exceptional Talent route was joined by one for Exceptional Promise – a relaxing of the current criteria to embrace a greater number of individuals from the cultural world beyond our borders. 7.4 Transform / Re-imagine India 7.4.1 In 2012, as one of the legacy programmes of the Cultural Olympiad, the Arts Council agreed to work with the British Council on Transform, a cultural programme designed to promote exchange between UK and Brazilian artists in the run up to the Rio Olympics. 7.4.2 We are now proposing to draw on the lessons learnt from Transform to start a second country-specific programme with the British Council. Re-imagine India will provide English artists and arts organisations to develop an exchange programme with their counterparts in India. The proposal is to launch a twophased, managed call for projects through a strategic fund using lottery money. BC will provide expert advice on setting criteria and making decisions. We will administer the awards. Activity will build towards a 2017 showcase to coincide with the 70th anniversary of Indian Independence, though there will also be attention given to the legacy of relationships developed through the projects. The development phase, with a budget of £500,000, will support 10-15 organisations to research and develop plans [2014-15]. The project phase, with a budget of £1m, will make seven or eight awards to the strongest projects in 2015-16, for activity in 2017-18. 7.4.3 Following our work with BC in the BRIC territories of Brazil and India, we expect to collaborate on another country initiative with BC at some point during the period 2015-18. 7.4.4 The British Council has committed £5m to the Re:Imagine project and is fundraising from partners. Page 7 of 11 Executive Board 21 October 2013 – Item 8 Recommendation: We seek EB approval to commit £1.5m now (resourced from the OLDF rebate -see appendix one) to enable us to do detailed design work with British Council on a Re:Imagine India strategic fund. 7.5 Touring of international work in England OUT OF SCOPE 8. Creative Media OUT OF SCOPE 9. Partnerships OUT OF SCOPE 10. What will success look like? 10.1 Drawing on the measures outlined in our refreshed strategy document, we believe we will be able to show, as a result of our investment, development and advocacy work, that: More artists, cultural organisations and museums based in England are exporting their work internationally and visitors cite the arts and culture as a reason to visit England More people in England will have the opportunity to experience or participate in great art and culture from around the world Arts organisations, museums and libraries have increased the share of their income which comes from a wider range of contributed or earned income sources overseas, particularly through EU funds The leadership and workforce of the arts and cultural sector is diverse and appropriately skilled, reflecting an international exchange of people, knowledge and ideas, as well as our expertise in learning Page 8 of 11 Executive Board 21 October 2013 – Item 8 More children and young people have the opportunity to experience high quality arts and cultural experiences, involving international artists, organisations or work 10.2 The initial impact will be greatest against goals one and three. There will be delivery against the other three goals over the medium to long-term. 10.3 We will have increased our understanding of the economic and cultural impact of export and exchange. Research - perhaps in partnership with the British Council and UKTI - in year one could sharpen our planning for investment in years two and three. In tandem with the above, we will undertake robust evaluation. Existing provision will be benchmarked in year one [2014], with the potential inclusion of additional questions in the NPO annual report. We will complete bespoke evaluations on the impact of our work with the British Council, particularly on Re:Imagine India, AIDF and showcasing. 11. Budgets & Process 11.1 Our budget proposals (see Appendix One) for Cultural Export, Cultural Exchange, Digital Capture and Showcasing currently sit on separate lines for indicative purposes. The strands aggregate to £18m of lottery spend over four years (2014-8). 11.2. We propose that once the OLDF rebate is confirmed that we consult further with the sector and with partner organisations. We would then work with colleagues in the Investment Centre to design appropriate funding programmes & mechanisms to deliver the new initiatives outlined above. The detail of these programmes would be brought back to EB and National Council as appropriate for approval. We propose that the bulk of this programme is launched in October 2014, although we will need immediate approval of the commitment to Re-imagine India (£1.5m) in order to commence detailed negotiations with BC. 11.3 While the OLDF rebate-funded lottery programme would cover the bulk of the expenditure proposed here, there are a number of other important areas – advocacy and partnership-building – which require no direct investment, as well as some others (co-funding the Cultural Contact Point and the Cultural Calendar for which we request investment of additional GiA. 11.4 We continue to see the British Council as key partners in the distribution of these funds, and plan to invite their comments on applications and their expert advice in decision making (subject to legal advice). Page 9 of 11 Executive Board 21 October 2013 – Item 8 12. Next Steps 12.1 Agree the detail of the OLDF spend with the DCMS 12.2 Circulate this paper to Area Councils for comment in October/November 12.3 Include key headlines in NPO briefings in November as part of suite of strategic funds that will run alongside NPOs, MPMs and GFTA. This will require consideration of the comms issues around using lottery funds for international work. 12.4 Consult with the sector by area to help shape our approach to export and exchange investment during November and December 2013. 12.5 Work further with the British Council on agreeing the scope of Re-imagine India 12.6 Work further with the British Council and UKTI on agreed approach to (and investment in) showcasing and other export initiatives 12.7 Develop detailed programmes and funding mechanisms (Jan-March 2014) for: Refreshed AIDF Reimagine India Showcasing Other export support (including touring) Cultural Exchange Creative Media In the design of these programmes, we will look for opportunities to work via commissioned & solicited grants through trusted external parties where possible, as well as to draw on the experience of previous strategic funds initiatives such as Audience Focus. The aim will be to have a delivery mechanism in place that recognises the constrained resource regime that the Arts Council now needs to work within. 12.8 Seek governance approval from Executive Board and National Council as appropriate for the detailed programme during 2014. Title Author Version Date of version A refreshed approach to international work Nick McDowell and Nicola Smyth 2 10 October 2013 Page 10 of 11 Executive Board 21 October 2013 – Item 8 Appendix One: Budget 2014/15 to 2017/18 Lottery In millions 2014-15 Lottery 2015-16 Lottery 2016-17 Lottery 2017-18 Lottery TOTAL by project AIDF 0.50 0.50 0.50 0.50 2.00 Showcasing 0.50 1.00 1.00 0.50 3.00 Cultural Exchange 1.00 1.00 1.00 1.00 4.00 BC: India BC: Other country focus Export (incl touring) Creative Media for Cultural Export TOTAL by year 0.50 1.00 Year 1.50 0.50 1.00 1.50 1.00 1.00 1.00 1.00 4.00 0.50 0.50 0.50 0.50 2.00 4.00 5.00 4.50 4.50 18.00 Page 11 of 11