Investing in Cultural Capital

31 January 2007

On most nights in the city there is a balance between events held at bars and venues with a commercial driver, and those held at the many cultural centres.  The latter are usually associated with free or low price entry and often more experimental styles of music. 

To what extent can the growth of rock and electronica in Mexico be regarded as purely a business venture, or are the music and lifestyle changes being generated part of the new cultural and social fabric of society? 

The definition of new music as new culture has many important connotations; Nacho Piñeda at Multiforo Alicia, which lies at the heart of the independent scene, has been pushing for tax free status for the venue as a cultural centre.  Given the wide range of musical styles and other forms of performance such as the celebration of woman's hip hop music and art last night (2.2.07) one could argue his point. 

The support of new music by central government is crucial in developing the quantity and quality of performance on offer.  But how does this benefit the country and provide value for those that do make a contribution to tax coffers? 

A recent list published by "Lonely Planet" (the guide widely used by backpackers) places Mexico in the top ten of world destinations for 2007 due to "the vibrancy of its underground music scene"; this clearly establishes a mandate for central support.  Instead of a "Cool Britannia" or the Beatles tour of Liverpool City centre there may be talk of the "New Mexican Wave" and trips round Monterrey in an open-top double-decker bus searching out the original hang outs of the Happy FI collective.  Don't laugh believe…

If new music can be included as part of the cultural capital of a country then by strengthening it one is making a contribution to diversifying national assets away from old fiscal props such as oil deposits.  Recent articles in the international press highlight a fairly dismal picture for Mexico given the prospect of a future without oil; to consider investing in alternatives now seems prudent. 

However in order to exploit human capital one first has to nurture it.  High profile foreign acts are streaming into the country over the next couple of months such as Rodger Waters, The Who and Coldplay playing expensive gigs far out of the reach of the majority of citizens. These are guaranteed to sell out given the overwhelming media support from interested parties. A specific tax on such events that is "ringfenced" (set aside) for the establishment of infrastructure and institutions that help support a new generation of musicians may be paired with an agency that actively promotes Mexican music abroad. 

There is something like a "gold rush" feel to the new music scene in Mexico at present.  It will take some element of coordination between State and the major players within the industry if Mexico is to enjoy the benefits in the longer term.  The challenge lies in finding a harmony that supports musical expression without regulation that suppresses experimentation and innovation. Of course, as with any intervention by central government, it is people's belief in the transparency and effectiveness of policy that would help insure its success.

note:

Taxes do not have to be onerous Adam Smith suggested 4 maxims equality, certain, simplicity and convenience; with the impact on market outcomes also considered. 

A 1 peso tax on every seat at A grade venues such as Auditorium Nacional, Foro Sol and Estado Azteca would raise a significant amount of money to be invested in new music.  It does not have to be just foreign bands but these are the ones that tend to charge high prices and still sell out.

If anyone would like to discuss the ideas more I am currently preparing a proposal

eamonn@mexadelic.com.mx