2   The regulatory environment 

2.1 Sector description

In spite of the radical changes in society in the past decade, public discussion has not abated about what is possible and admissible in managing the cultural processes.  The problem is as old as culture itself:  at different periods there have existed and co-existed three main models for regulating culture:  subordination, coordination and contention.  And these functions were implemented by different institutions, including the church, the state, business, supra-national and international organisations and foundations.  Besides, culture itself holds the essence of its self-sufficiency, managing to remain relatively autonomous of external influence:  its creators and consumers.

The cultural sphere is a highly complex area of regulation, and there is no way of regulating it that is wholly appropriate once and for all.  Further, even when specific mechanisms of regulation have been established, this cannot ensure the creation of quality cultural products, let alone masterpieces.  Too much state intervention may lead to dependence of cultural activity on the authorities, the ruling circles, and the deformation of cultural life as a whole.  Each country has its own model for regulating culture, conditioned not only by economic development, but also by the understanding of the concept 'culture' underlying the system of state regulation.  At a time when countries are being involved more intensively in global relations and inter-state cooperation, the struggle for cultural originality and the ambition for local specificity also grow keener.  In general in the contemporary world the tendency is for de-centralisation, and movement towards more indirect methods of management in the cultural sector, the transfer of tasks to various private-sector business and non-governmental organisations.

In the USSR cultural monuments, buildings and institutions were under state control:  they were administered and funded exclusively by the state.  No commercialisation of cultural activity was allowed - and this stereotype is alive today, in spite of the opportunities that have arisen through the development of private initiatives.  The move to the market economy was accompanied be de-statisation of the cultural sphere, which has shown itself in the rejection of total ideological control by state organs and relevant Party directives.  For cultural practitioners this means freedom to create, and for society it means freedom to satisfy cultural needs.

However, for the time being no effective mechanism has been set up for the private and other non-state funding of culture, which has placed theatres, film studios and museums in a difficult position.  This especially relates to works of high culture for which there is not necessarily mass popular appeal and which do not always quickly find their place on the market.  At the same time, the most modernised elements of culture are becoming part of material production.  This industry includes filmmaking, TV, radio, audio and video, mass literature, music and theatre.  Unlike the traditional production of goods, in the sphere of cultural industry the role of the author and/or executor is of prime importance, which makes it necessary to establish and apply author's rights in these spheres.  On the other hand, unlike traditional spheres of cultural activity, there is an important role also for the producer, the impresario, the manager, promoter and other participants in the functioning of this business.

In Russia today, all individual legal entities in the cultural sphere are divided into 'commercial' and 'non-commercial' organisations, with the primarily non-commercial character of cultural organisations being predominant.

One should note that ten years ago the picture was different:  there were virtually no commercial organisations and the overwhelming majority of non-state groups were directly or tangentially linked with Party and/or state structures.  Over the past decade the quantitative relationship between the three types of organisation has changed, as there has been a rapid rise in the number of commercial structures, independent, non-governmental movements have arisen and the character state organisations' work has changed.

If in the early period of de-statisation and creation of new forms the appropriate legal base for this activity did not exist, then today a whole package of laws has been passed, regulating not just legal status and working conditions, but also the relations between the different organisations.  One could mention the law on public associations, the law on charity and charitable organisations, and a range of tax legislation.  The legal basis for regulation in culture exists in the form of general laws (the State Codex of the Russian Federation, labour laws, tax laws, budget laws; the Federal Law ‘On Non-Commercial Organisations’; the Federal Law 'On Charitable Activity and Charitable Organisations', etc), but also of special legal Instructions on culture, which have been passed at Federal level (Federal Laws regulating relations in culture.  Presidential Decrees aimed at support for culture and the arts, legal regulatory documents approved by the RF Government, and the regulatory and instructional documents of the RF Ministry of Culture).

The new situation of culture in Russia - especially the fall in state funding - gave birth to a notable vagueness about responsibilities and the existence of two conflicting viewpoints regarding the role of the state in regulating cultural activity.  These find reflection in current policy and in the requirements for state support from representatives of creative organisations.  At the same time, it seems obvious that there is not enough interrelation between culture and other spheres of public activity and regulation, including the market for culture and business as a whole.  In particular, the development of civilised sponsorship of charity is still at an early stage.  Up to now mechanisms for attracting additional sources of income have not been developed and successful realisation of the opportunities for fund-raising has not become a universal practice.
*   *   *
RF legislation on culture (Law of 9.10.92, no 3612-1) defines cultural activity as 'work to preserve, create, disseminate and teach cultural values’; it defines creative activity as 'the making of cultural values and their interpretation'.

The legislation obliges the state to support culture with funding and provision of technical equipment and materials.  The main methods of state funding of culture are direct allocation from the state budget and indirect funding through tax privileges etc.  The basis of state guarantees for the preservation and development of culture in the Russian Federation is state funding, and it is deemed that not less than 2 per cent of the resources in the Federal Budget of the Russian Federation should be allocated to culture. In regional and local budgets, the annual allocations to culture may not be less than 6 per cent of resources.

State cultural policy is set by ministries whose number is being reduced through merging, comprising today the Ministry of Culture, the Ministry for the Press, TV/Radio and the Media, and the State Archive Service, but also the cultural and other ministries of regional authorities. These have relatively independent policies in their own cultural spheres, attempting - in conditions of severe financial austerity - to preserve both the institutions and their own staffs .1   The non-competitive system for the funding of culture that continues to pertain in Russia up to now means that cultural professionals are fully dependent on civil servants for the scale of the state grants they receive.

The organs of state authority and administration are required to develop and implement policies for the introduction in cultural organisations of new techniques and technologies; they must use tax privileges, loan advances and other methods to stimulate the role of non-state organisations in creating new techniques and technologies in culture. The organs of local self-government have responsibility for providing for use or rental by professional cultural workers and creative collectives studios, workshops, laboratories and other work-places essential for creative activity, and for establishing rental scales at levels that do not do excessively more than cover the cost of communal services. The state offers tax privileges to cultural establishments and workers.

Over the period 1992-97, the funding of culture (and the media) from state budgets fell by 40 per cent, in an unpredictable way.  At the beginning of the economic reforms the rates of grant cuts matched the tempi of fall in Gross National Product.  In 1994 allocations to culture even rose by 8 per cent in comparison with 1993, but in 1995 the total fell by 27 per cent and continued to fall before rising by 12 per cent in 1997.   In the period since the law 'Bases of the Law on Culture' was passed, the norm prescribing allocation to cultural funding of not less than 2 per cent of the expenditures of the Federal Budget and not less than 6 per cent of local budgets has not been met once, even at the stage of forming the Budget: in 1993 this indicator was 0.35 per cent, in 1994 0.82 per cent, in 1995 0.91 per cent in 1996 0.91 per cent, in 1997 0.62 per cent, in 1998 0.86 per cent, and 1999 0.58 per cent, while the actual funding received was significantly less.2

For comparison: the share of the state expenditure on culture in Sweden constituted 4.8 per cent, in Iceland 4.6. in Denmark 4.0, in Norway and Finland 3.6, in France 3.2, in Belgium 2.5 and in Germany 2.5. 
Note that the number of cultural establishments per 1 million inhabitants is less in Russia than in developed countries: in Russia, for every 1 million inhabitants there are 3.2 theatres, but in Austria there are 24, in Sweden - 13.6, in France 9.6, in Great Britain 8.9, in Japan 8.7 and in Italy 5.9.  In Russia there are 10 museums per 1 million inhabitants, in the Netherlands 35, in Sweden 34, in the Czech Republic 33 and in Germany 32. There are 368 libraries in Russia per million inhabitants, compared to 2500 in Finland, and 708 in the Czech Republic. In Moscow there are 8 museums per 1 million inhabitants, while in London there are 41, in Paris 39, and in Rome 36.  In Moscow there are 20 theatres per 1 million people, while there are 63 in Vienna and 44 in Berlin.

Under 'Expenditure' in the St Petersburg municipal budget for 2002, the section for Culture, the Arts, Cinema and Media was allocated 2.9 per cent of the budget's overall total, with, specifically, 1.3 per cent for culture.  Under the general section heading, funding was allocated to:  state support for theatres and other organisations; maintenance of libraries; maintenance of museums and permanent exhibitions; city public events and festivals; cultural and arts programmes; maintenance of palaces and houses of culture; financing of programmes to support cinematography; state support for children's cinemas; other establishments and measures relating to social and cultural development, to culture and the arts.

Support for the media (newspapers, journals and television) was provided in the form of subsidies making up almost half the budget of the City Administration's Committee for the Press and Public Relations (RR.72m).

Besides this, the city budget envisioned capital expenditure on measures to preserve and restore historic and cultural monuments and to repair theatres, museums, libraries, and an increase in the role of funding from the Federal Budget was envisioned in connection with St Petersburg's 2003 Tercentenary. The importance of this forthcoming event was confirmed at the highest state level. Following the Presidential Decree 'On the Tercentenary of the Founding of St Petersburg' a State Committee to Prepare the Tercentenary Celebrations was formed, which approved the conceptual approaches of the City's government to preparing and celebrating the jubilee; a similarly named special Committee was formed In the St Petersburg Administration.

However, the cuts from the Federal budget were partially compensated for by an increase in expenditures from local state funding of 2.4-2.9 per cent over the same period.  But in the regions there was continued failure to pay over funding due (up to 70 per cent). In reality in this period all that was funded were salaries and student stipends.

In the year 2000 the government approved the third Federal programme 'Culture in Russia (2001-2005)', which embraced three sub-programmes:  'Development of culture and preservation of the cultural heritage of Russia',  'Cinematography in Russia', and 'Archives in Russia' - where for the first time there was talk of developing and not just preserving culture. To finance this programme it was planned to allocate RR.49.6 billion, including RR.28.5 billion from the Federal Budget, RR.7.7 billion from regional budgets and RR.12.9 billion from non-Budget sources.

This programme envisages a new cultural strategy involving important economic transformations.  The RF Ministry of Culture is allocated the role of collective organiser of the market and regulator of funding flows in the sector. Two thirds of the Budget resources will go on the maintenance of the approximately 200 establishments of Federal significance, the key institutions that demonstrate values and determine the level of Russian culture. Their funding, including staff salaries, is to be increased, and the remaining cultural establishments will be funded from one third of the Budget's resources, being required to operate on the basis of market competition and to competitive application for grants.

2.2 Regulation in the cultural sector 

Today in Russia all forms of ownership are allowed (state, private, commercial, private-non-commercial) for cultural treasures, buildings, installations, complexes, equipment and other property of cultural designation.  With the passing of the new Civil Codex and the laws 'On Non-Commercial Organisations' of 12.1.96 and 'On Charitable Activity and Charitable Organisations' of 11.8.95 the legal bases were created for non-commercial private activity and for patronage in the cultural sector.  This made it possible for cultural activity henceforth to have either commercial or non-commercial in character.  Those active in culture include both state and non-state cultural organisations, among which there are state establishments and organisations and commercial enterprises, including small non-commercial and non-state organisations, which are officially designated on the basis of specific criteria and subject to differing regulations.

Commercial organisations

The main goal of their activity is receipt of profit.

•	Commercial organisations satisfying the requirements of Article 3 of Federal Law no 88-F3 are designated small enterprises.

•	State and municipal unitary enterprises (including Treasury enterprises), are considered commercial, possessing not general but special legal rights under the RF Civil Codex.

•	Commercial organisations (as distinct from non-commercial) may not receive charitable donations.

State establishments and organisations

•	The activities of state and municipal cultural organisations are financed by their founders in accordance with agreements, but not less than the norms of state funding for individual types of cultural organisation.  It is important to note that receipt of re sources from other sources does not affect these norms and the overall level of funding of a cultural organisation by its founder or founders.  However, despite provisions to the contrary in Article 46 'Bases of Cultural Legislation in the Russian Federation', receipt of donor resources by cultural organisations funded by the state or municipal budgets often leads to a decrease in state that funding.

•	The paid forms of cultural activity by cultural-educational establishments, theatres, philharmonias, folklore collectives and performers are not viewed as entrepreneurial, if the income from them is fully invested in the institution's development and improvement.

For example, museums' main activity is defined as including:  receiving visits, exhibition of museum collections elsewhere, showing of temporary exhibitions, writing museum catalogues and servicing visitors, making replicas (based on museum exhibits, with possible enlargement), producing copies of documents and items in reserve collections; carrying out research on themes relating to the museums' permanent displays, the restoration services of creator-producer associations to restore books, paintings, monuments or historic documents.

•	Within limits, cultural organisations in possession of resources to pay salary bonuses may independently establish for their own staff scales of pay with differentiated additions and adopt various progressive forms of organisation, payment and stimulus to staff.

•	Social and cultural establishments may transform themselves into non-commercial organisations, first of all into foundations and non-commercial partnerships. This gives the opportunity to attract to funding cultural establishments the resources of private individuals and corporations, while at the same time maintaining supervision by the administrative organs over the use made of the state (or municipal) property given to the non-commercial organisation in accordance with primary designation.   In cases where a building that is a historic or cultural monument is handed over or sold to a non-commercial organisation, with help from the inspectorate the state is obliged to ensure preservation and public access.

Non-commercial organisations

•	The essential condition is that receipt of profit is not the main goal of their activity.  All contributions from founders and sponsors, as well as all profits of non-commercial organisations must be spent to achieve the organisation's goal as established in its charter.

•	Joint founders of this kind of organisation may be citizens and individuals but also organs of state authority or local self-government.

•	The founders of non-commercial organisations do not have the right to distribute profit or the organisation's property (as distinct from the shareholders of tovarishchestva (specific form of commercial partnership).

•	Non-commercial organisations may be created in the form of public or religious organisations (associations), non-commercial partnerships, establishments, autonomous non-commercial organisations, social, charitable or other types of foundation, associations and unions, but also in other forms envisaged by Federal legislation.

•	The activities of non-commercial cultural organisations in realising production, work or services as envisaged in their charters are regarded as 'entrepreneurial' only in so far as the income received through this activity is not reinvested directly in the organisation concerned to meet the needs of maintaining, developing or improving the main activity envisaged in their charter.

•	For purposes of taxation non-commercial organisations have to account separately for receipts from commercial and non-commercial activity.  In presenting their accounts, income relating to commercial activity is separated from that received through the main form activity envisaged in their charter.  Besides this, documents are required confirming the agreement to this activity of the organisation's founders.

•	Small enterprises cannot be deemed non-commercial organisations, since Article 3 of the Federal Law No 88-F3 states 'subjects of small enterprise are understood to be commercial organisations . . .'

•	None of the privileges (relating to accounts and taxation) granted to subjects of small enterprise are granted to non-commercial organisations.

State, municipal and non-commercial cultural organisations have the right to undertake entrepreneurial activity only as envisaged in their charters.  The following activities of state and municipal cultural organisations are deemed to be 'entrepreneurial':

•	Selling or renting out their main collections and property for goals not linked to cultural activity;

•	Trading in bought-in goods or equipment, or offering mediation services;

•	Sharing in the activity of commercial enterprises, establishments and organisations (including cultural);

•	Obtaining shares, promissory notes and other securities and receiving income from this (dividends, interest, etc);

•	Implementing operations, work or services that earn them income but are not foreseen in their charters.

In their entrepreneurial activity cultural organisations are equated with an enterprise and fall under the jurisdiction of the legislation of the RF on enterprises and entrepreneurial activity.   

Such organisations may carry out entrepreneurial activity only in so far as this serves to achieve the goals they were created for and is appropriate to these goals.

2.3 Comparative organisational models 

After the public organisations of invalids and religious organisations, state cultural establishments and creative unions have the most tax privileges.  The measures declared in governmental policy documents and programmes for stimulating the non-state cultural sector are not sufficiently supported by tax policy.  This discrimination is growing stronger.

Profit tax
State and municipal museums and libraries, philharmonics and state theatres pay no profit tax, while cinematographic organisations can set against payment of profit tax the resources they invest in building new cinemas (including shared participation) and repayment of loans for these goals, including interest.  This privilege was formerly extended to non-state organisations in this category, but - after numerous instances were revealed of the privilege being used as a front to hide commercial activity and tax avoidance - in 1996 it was removed from non-state and non-municipal museums, libraries and concert halls, while for state and municipal cultural establishments the privilege was extended only to profit from their main, charter activity.  It is worth noting that organisations dedicated to the production and reproduction of works that receive the certification 'national film', irrespective of organisational or legal form and form of ownership, are freed from profit tax (paragraph amendment included 13.1.99).

Donations in support of cultural activity or institutions also earn some exemption from profit tax, but the scale of such donations is limited to minimum sums.  Profit tax exemption has been denied to enterprises and organisations donating resources to municipal and independent cultural establishments - although this privilege is retained for those donating to state-sector cultural organisations.

According to the law, the sum of taxed profit is reduced by the amount of resources donated by individual juridical entities to state cultural establishments with no requirement to repay, amounting to 5 per cent of profit.  When the recipients are other cultural organisations or charities, the amount is reduced to 3 per cent.  In Western countries similar tax privileges are usually established on a scale of 5-10 per cent.

Tax on land and property

Cultural establishments do not pay these taxes.  The state extends this exemption to literary and artistic practitioners who use specially equipped installations, buildings and premises (including dwellings) as creative studios, workshops, or ateliers, but also to individuals using their living space for non-state museums, libraries or other cultural organisations open to the public.

Value Added Tax

VAT is not imposed on the charter services of cultural establishments, or on printed publications received by state libraries and museums through international book exchange.  VAT exemption is possible only if all the operations of a non-commercial organisation are exclusively charitable.  As equipment donations are subject to VAT it is more beneficial for a commercial organisation to destroy old computers than to give them as donations to a museum or a charity.

Rental

State cultural establishments in general do not pay rent.  Creative practitioners and collectives of creative practitioners are granted for use or rental premises for studios, workshops, laboratories and other working spaces essential for creative activity, with rent payment on a scale that covers the cost of communal services.  

For foundations, unions, associations and other non-commercial organisations working in this sphere, the St Petersburg law 'On the system of determining rental charges for non-dwelling premises whose landlord is St Petersburg' lowered rentals considerably (from 2.5 to 3 times lower than the average for the city, depending on the specific type of activity).  For this, use is made of the 'coefficients of social significance' of the specific type of activity of the tenant (Kc).  The tenant's type of work is determined according to the OKONKh Codex (ie, if a non-commercial organisation engages in entrepreneurial activity, then this is in no way reflected in the rental tariff, which is established in accordance with the main type of activity).

Use of state property

Up to the present time, no programme has been created for profit to be earned through use of historic or cultural monuments. According to the legislation, any income earned through offering items from the state museum collection to outside exhibitions, or their loan for cinema or video making, belong exclusively to the museum.  In practice, however, a large share is retained by middlemen, but also personally by individual museum directors.

In Western practice there are Boards of Trustees, etc, functioning as part of state cultural organisations, to whom the director must periodically account for work done and the use made of funding, including monies received, for example, through sales of museum giftware.

In Russia the managers of state and municipal cultural establishments effectively - faced with pressures caused by insufficient funding from the state budget - monopolise allocation of income received from use they make of their state property, which is actually general state property.3

Thus, from the point of view of taxation, state cultural organisations have the advantages.  
The work of non-commercial non-state cultural organisations encounters difficulties, whose origin stems from prejudices against 'private' organisations, but also from suspicion of tax evasion.
Often, instead of working to combat financial malpractice and the requirements of following the provisions of the law through annual audit and the publication of accounts on the sources of resources and the ways in which they were spent, the tax organs emasculate the tax privileges envisaged by the law for non-commercial organisations, equating foundations and other non-commercial organisations with commercial.

Countries with a developed market economy offer tax privileges and state support to non-commercial cultural organisations in exchange for their financial transparency and specific limitations on their activity.  Besides this, to add to receipts for the cultural budget special hypothecated taxes are introduced (on income from the showing of cinema films on TV, selling video films or clean video cassettes, etc), the resources from which are invested in domestic filmmaking. In Russia, equivalent contributions to state support for culture could be established in the form of tax on the sale of goods and services on the premises of cultural institutions, sale of clean audio and video materials, on tourism services and commercial advertising in the state -owned media; in addition, some state lottery could be established that would generate grants to benefit the cultural sector.

Inequality in the tax sphere holds back the development of non-commercial non-state organisations and, as a result, impoverishes the cultural budget as a whole. Yet more control over the work of non-commercial cultural organisations envisaged by existing legislation is so far not being implemented.

A real priority for non-commercial organisations is seeking funding from donor organisations, which receive little official stimulus to respond.  Donors who finance individual cultural projects are nevertheless acknowledging the social value of this work - both as a whole and for themselves.  This gives non-commercial organisations (state and non-state) opportunities to realise their services (projects) on the donor market.  However, to date this kind of fund-raising is not widespread.4

For example, in the total income from additional sources of a group of state theatres in St Petersburg in 1996-99, earnings from additional sources were on average 14 per cent; of this 37 per cent came from entrepreneurial activity, and just 14 per cent from fund-raising.

For this reason, the kind of relations that different types of cultural organisation enter into through social partnership and the way each capitalises on its strengths is especially interesting.  If commercial organisations have, mainly, financial advantages, and the strong sides of the state non-commercial cultural organisations show themselves in the form of tax privileges and knowing how to work with the state administrative organs, then the role of non-commercial non-state organisations has been envisaged as defending and preserving the interests of society and supporting and realising socially significant initiatives.  Business and the socio-cultural sphere are destined to collaboration and partnership links.  Social partnership in the sphere of culture is based on the interest of each of the interacting organisations in a search for the solution to problems, bringing together efforts and opportunities from each of the sides, but also in mutually acceptable defence and observation of public interest.

Activity to disseminate cultural values also takes in the work of palaces and houses of culture - the houses of architects, actors, doctors, journalists, cinema, writers, composers, scholars, folklore practitioners, teachers; the lecture halls of the Znanie Society, of excursion bureaux, planetariums, establishments for after-school activities, parks of culture and leisure, circuses, etc.  The creative unions of St Petersburg are part of the Federal infrastructure of creative unions and implement their charter activity in support of their members in the appropriate spheres.  The activity of unions is under-pinned by membership subscriptions and sponsors' contributions. Individual events in which they are involved (anniversaries, for example) are funded from the municipal budget. The unions occupy buildings and premises in the historic centre of St Petersburg; they have important privileges and can offer their premises for rental by other organisations.

2.4 Records and statistics
Traditions in Russia of relating this or that kind of activity and those employed in it to the sphere of culture and the arts are reflected in statistics and other information of an official character.  But even official data falls far short of covering all the relevant employment, establishments and results of their activity.  If you extend the understanding of 'cultural sphere', looking at activity in a broader perspective, then the accounting difficulties also grow, which leads to large inaccuracies in official data and their interpretation.  The classification of types of activity in the cultural sphere used in Russian statistics is different from that used in legal and regulatory documents. As a result, the statistics do not cover many sub-sectors of cultural life, which makes it hard to analyse the processes taking place.

The state system of statistic review in the cultural sector is based on receipt of statistical data from organs of the RF Ministry of Culture (until recently, the RF Committee for Cinematography, the State company 'Russian Circus' and the Russian Chamber of Book Publishing).

Statistics cover:  libraries, relevant clubs, art galleries and exhibition halls, theatres, concert organisations, parks of culture and leisure, circuses, zoos, cinemas; TV and radio transmission.  They take account of historic and cultural monuments and reflect the publication of books, magazines and newspapers.

The statistical indicators cover the main areas of activity of these establishments, the condition of their material and technical bases, the quantitative and qualitative make-up of their staff.  In this area there is annual full Federal statistical review.

The main economic indicators include: employment, labour fund (average pay within the sector), number of establishments, and value of the main collections, volume of paid services offered to the public.  Other main indicators to calculate culture statistics include such concepts as circulation of the library fund, times read, visitors to performing enterprises, audience volume, etc.5

Employment

The official number of workers in culture and the arts is not big, but since 1996 it has shown a tendency to rise:

Thus, the official total figure for employment in the cultural sector is almost 76,000 or 3 per cent of all those employed in St Petersburg.  However, the statistics record all categories of those employed in cultural establishments, including individuals in the non-creative jobs.  For example, in 1999 the total number of theatre workers was 7,021, including a total of just 3559 artistic personnel.

This data is far from providing an satisfactory picture of the staff potential in the cultural sector, since (a) it records only those employed in the sector as traditionally conceived, but (b) also includes all categories of staff employed in cultural establishments or organisations.

It is important now that statistical review of those employed in the sector be extended to take account of those working in all the sub-sectors listed in the definition of creative industries (see Chapter 1) and take account of statistics from such related spheres as education, academic institutions and services, information services and non-manufacturing types of consumer service.

In the sphere of education alone, the schools of St Petersburg employ 5100 teachers of music and singing, fine art, drawing, physical culture, and career studies, some 70 per cent of whom have higher education.    42 non-school establishments (including seven arts centres) are attended by 143,000 children; 30,000 children attend 30 music schools and 5,500 children attend 18 art schools, while 12,700 children attend 16 schools specifically devoted to painting and drawing (figures from 1999).  St Petersburg has nine further education centres with an arts profile and seven secondary training establishments.  In the European and State universities there are arts faculties.  In 1998-9 the further education centres with an arts profile graduated 2090 specialists in this sphere, and the secondary special establishments 1425.  

Thus the official data make it possible to increase the total of those employed in the cultural sphere to 85,000, and if you take account of designers working in industry or the service sector, but also of individual freelances, you can speak of at least 90,000 employed in the cultural sector.

The picture presented by the sector is very differentiated, depending on the relevant form of ownership and sub-sector.  In the state cultural sector, salaries are 60-70 per cent of the average in the city economy.  Average monthly pay in small cultural and arts enterprises in 2000 was RR.730.  However, the reliability of official data about salary scales of cultural workers is open to question. 

Appendix 2 carries a list of the main types of cultural organisation and establishment in St Petersburg and the problems linked with the basic data available relating to their activities.

2.5 Small enterprise development

Small business is a part of the Russian economy, but for the time being the level of development of this sector is clearly insufficient.  After an initial period of growth in 1991-93, the number of enterprises stabilised around the figure 800-900,000.  In 2001 on the territory of the Russian Federation there were some 879,000 functioning small enterprises (the decrease in comparison to 2000 was 1.3 per cent); small enterprises in the cultural sphere realised production to a value of RR.4 billion, or 2 per cent of earnings by all small enterprises.  The economic crisis of 1998 had different impacts in this area, depending on orientation towards import or export.  Importers suffered particularly ('shuttles'), but also outward-bound tour firms, those that survived were those with access to local import-replacements.  The crisis also dealt a blow to the advertising business and to information technologies.

The concept 'small enterprise' was introduced by legislation in mid 1991.  The criterion defining a SE was the number of those employed - the figure being different for four different sectors of the economy.  In 1995 the criteria changed:  the maximum number of employees for an SE in the cultural sector became 50.
Order No 1389-r of the RF Government on 9.10.95 to Goskomstat Russia instructed them to set up, beginning in 1996, statistical review of the work of small enterprises following a system of
selective quarterly monitoring.  To aggregate on the basis of the selected enterprises, use is made of a typically random  selection with a variable share of the selection from each of the  intervals of groupings according to the indices being studied.  The selection for study is organised  so that one small enterprise fills in no more than one form for statistical reporting per report period.

Selection is made among enterprises of private and mixed forms of ownership with the following average numbers of employees:  in industry, construction and transport (from 51-100), in agriculture (from 31-60), academic institutions and  services (16-60), retail trading and consumer services (16-30), wholesale trading (16-50) and in others (26-50).

The annual total of individual small enterprises in St Petersburg in the cultural sector on 1 January is indicated in the table:
 
Since 2000 the tempo of small enterprise growth has fallen.  In all probability, the fall is linked with the re-registration of functioning small enterprises required for individual entrepreneurs without the formation of a juridical entity, which removed their tax privileges and some other advantages in the sphere of management and accounts presentation.   Belief that there is a considerably larger volume of enterprises seems fully justified, since the statistics for small enterprises do not include private entrepreneurs without the formation of juridical entity. The supposition is that the number of individual entrepreneurs is four times greater than the number of registered enterprises.6  Besides   this, a significant part of small business and individual entrepreneurs operate in the black economy - ie knowingly hide or minimise the activity they are carrying on with the aim of escaping tax-payment and other obligations.  According to the calculations of Goskomstat in 2000 in the sphere of services the share of the informal (black) economy was 23 per cent, including 24 per cent in the cultural sphere.  (V. Skvoznikov and N. Azernikova, Problems of measuring the black economy, Voprosy statistiki, no 12, 2001, pp 18-22.) 

St Petersburg is represented by 12.4 per cent of the general total of Russian small enterprises, ie for every 1000 city inhabitants there are 24 enterprises.  Of the total of 109,000 small enterprises, only some 1.5 thousand are in the cultural sector,7 where 1 per cent of those permanently employed in small enterprise in St Petersburg were to be found (small enterprises involved in trading and catering were leaders for numbers of enterprises, employees and impact of their activity).  Employment in small enterprises in the cultural sphere totalled 6177, 1 per cent of all employed in small business (or 8 per cent of the total employed in the cultural sector).

The main means for implementing state policy for support of small enterprise at regional level is the Programme for State Support of Small Enterprise in St Petersburg for 2000-2001, approved by the St Petersburg law no 225-25 dated 9.6.00.  The results of the realisation of the measures of this Programme include:  creation of a telephone 'hot line' to provide small enterprise with specialist express information and centres for support of small enterprise in six districts of the City.  There is a permanent exhibition of the work of small enterprise in St Petersburg.  The St Petersburg Union of Entrepreneurs has opened a public reception centre, where representatives of small enterprise may receive advice on any aspect of running their business.  The Regional Foundation for the Scientific and Technical Development of St Petersburg was the winner in a competition for realisation of the Programme, and received a subsidy of RR.1 million for development of the infrastructure of the Innovation and Technical Centre, making it possible to attract an additional RR.15 million from non-budget sources.

Taking account of the experience of realising the Programme, the City Administration's Committee for Economic Development, Industrial Policy and Trade drew up a draft St Petersburg law 'On the Targeted Programme of St Petersburg 'State Support of Small Enterprise in St Petersburg' for 2002-2004'.  In November 2001 this draft was approved by the Government of St Petersburg, and in December was passed by the Legislative Assembly.  For realisation of the Programme's measures, the following main amounts of funding are planned:  in 2002:  RR.98.4 million; in 2003: RR.30 million; in 2004:  RR. 40 million.  The Programme's aim is to create an enabling economic environment, stimulating the effective activity of small enterprises in St Petersburg.  The achievement of this goal envisages the solution of priority tasks:  creation of an informational base for support of small enterprise; forming and development of a small-enterprise support infrastructure; but also the development of inter-regional collaboration and exhibiting.  In the course of realising the Programme it is proposed to carry out a complex of measures to improve the legal, tax and administrative environment so as to facilitate entrepreneurial activity, creating new jobs and increasing the well-being of broad sectors of the population involved in enterprise.

All the same, one may conclude that the broad-scale development of small business in St Petersburg, but also in all Russia has yet to take place.  In spite of the attempts to lower administrative barriers - the main reason for this situation - small enterprises as before complain about the level of taxation, the instability of the tax system, lack of financial resources and bureaucratic pressure.  In 2002 the Law on the Single Social Tax came into force along with 25 chapters of the Tax Codex, which sharply increased the tax burden on small business - for some kinds of business it was doubled or even trebled - and, most important, increased the volume of documentation required.  The introduction of the tax on indicative income led to extremely contradictory consequences and played a rather negative role.  The result:  small business again retreated to the shadows.

The further development of small business in St Petersburg, considered the leader in this sphere (after Moscow) is made difficult by lack of stability in the legal, regulatory and tax regimes:  and the large number of administrative barriers created by the authorities.  The most complicated problems in the current activity of small enterprises are connected with high taxes, insufficient sales and/or working capital, and rental of premises.  Besides this, in small businesses it is typical to meet with a low level of business discipline, weak management and lack of qualified staff and professional knowledge.

High taxes

This is a common feature of the Russian economy and a way out for small business may be the tax reform proposed for 2003 onwards.  However, an easing of the tax regime is envisaged only for small enterprises with less than 20 employees.

Sales

Problems here are also common for entrepreneurs, irrespective of the size of the enterprise.  Successful sales in the creative industries may be achieved through organised marketing support for small enterprises.

Working capital

The lack of working resources is a special problem for small business as compared to large-scale.  The main problem is lack of access to normal bank loans and the risks associated with semi-legal loans. The recent period of small enterprise development demonstrated that no direct forms of support, subsidies from the budgets, inexpensive targeted loans, funds for support of small business solve their problems, but - rather - have tended to create the conditions for corruption and unfair competition.  Urgent solutions are being sought, one proposal being to develop the practice of mutual loan making (credit cooperatives, etc).

Rented premises

Rented premises for the development of small business are a problem for small enterprises, because of the general non-regulation of market relations in the area of rented property, where tenants frequently suffer, for example, extortion, sudden rent increases, lack of information.

Conclusion
The main problems of St Petersburg's nascent creative industries are caused by features specific to the current stage in Russia's economic development.  At a time when economic stringency makes it impossible to concentrate state financial resources as before in priority areas of cultural development, the stimuli for cultural establishments to earn their own resources have so far failed to receive sufficiently positive results.  Barriers exist to prevent the uniting of state resources with those of private and corporate sectors to focus on cultural development.

The key problems that policy in the cultural sphere should be directed to solving are the following:

•	The slowing of tempi of modernisation and innovation in cultural life: the most important factors for the self-development of culture and raising the social activity of the population;
•	The split in the cultural space and reduction in the participation of Russia in world cultural exchange;
•	Cuts in the specialist staff potential of culture as a result of the sharp fall in income levels of creative people; outflow to other sectors of the economy and emigration abroad;
•	Lower level of cultural provision for the population.

The fullest use of the advantages of St Petersburg for the development of the creative industries is a reality in the context of specific favourable opportunities - among which the forthcoming Tercentenary stands out. 

Notes
1.  P.S. Filippov (ed), Sotsial'no-ekonomicheskoe polozhenie v Rossii. Spravochnik, Norma, SPb, 2001.
2.  Ibid
3. Ibid
4. A.I. Dymnikova, 'Deiatel'nost nekommercheskikh organizatsii kul'tury po privlecheniiu blagotvoritelei (donorov): problemy I perspektivy', Blagotvoritel'nost v Rossii, Liki Rossii, SPb, 2001, p. 442.
5. Metodologicheskie polozheniia po statistike, vyp. 1, Goskomstat RF, Moscow, 1996, pp.130-32.
6. Razvitie predprinimatel'stva I predpriiatii v Rossiiskoi Federatsii. Politicheskie printsipy I rekomendatsii, OECD: Centre for Cooperation with Non-OECD Countries, 2001.
7. Podderzhka malogo I srednego biznesa v Peterburge, no 5, SPb, 2001.

Literature
1.  Russian Federation Law 'On the Export of Cultural Treasures, 15.4.1993, No 4804.
2.  Russian Federation Law 'Bases of Cultural Legislation in the Russian Federation'.
3.  Bases of Cultural Legislation in the Russian Federation (http://dbserv.ihep.su/~pubs/law/cult-k.htm) 
4.  Russian Government's Ten Year Programme (http://fdnceter.or/onlib/bookshelf/index.html)
5.  Federal Law 'On Charitable Activity and Charitable Organisations', 11.08.1995, no 135-FZ.
6.  Federal Law 'On State Support of Small Enterprise in the Russian Federation', no 88-FZ.
7.  Federal Law 'On Non-Commercial Organisations, 12.01.1996, no 7-FZ (in the edition of the Federal Law, 16.07.1992, no 140-FZ).
8.  A. Alekseev, 'Novaya rossiiskaya gazetnaya pressa: tipologicheskaya struktura I ee ismeneniia (1988-97gg)', Teleskop: Nabliudeniia za povsednevnoi zhizn'iu peterburzhtsev, no 1, 1999, p. 2.
9.  Yu. Vladimirov, 'Biudzhet podderzhal televidenie I izdatel'stva', Prospekt Sankt-Peterburga, mart-aprel, 2000.
10.  A.I. Dymnikova, 'Deiatel'nost nekommercheskikh organizatsii kul'tury po privlecheniiu blagotvoritelei (donorov): problemy I perspektivy', Blagotvoritel'nost v Rossii, Liki Rossii, SPb, 2001, p. 442.
11.  O. Ermolaeva, SREDA, no 5 (11), May 1999.
12.  Zdravookhranenie, obrazovanie, kul'tura v Sankt-Peterburge I Leningradskoi oblasti v 1999 godu: Stat. Sbornik, Peterburgkomstat, SPb, 2000, p.147.
13. Maloe predprinimatel'stvo v Rossii: Stat. Sbornik, Goskomstat RF, Moscow, 2001, p.109.
14.  Metodologicheskie polozheniia po statistike, vyp. 1, Goskomstat RF, Moscow, 1996, pp.130-32.
15. Podderzhka malogo I srednego biznesa v Peterburge, no 2, SPb, 1999.
16.  Podderzhka malogo I srednego biznesa v Peterburge, no 5, SPb, 2001.
17.  E.V. Popovskaya and T.N. Kalinovskaya, 'Novoe v statistike: o formirovanii statistiki individual'nogo predprinimatel'stva, Voprosy statistiki, no 1, 2002.
18.  A. Pushkarskaya, 'Podrobnee o televidenii, SREDA, no 8, August 1998.
19.  S.N. Ragimov and B.V. Petrov, 'Sovremennye problemy razvitiia malogo predprinimatel'stva v Rossii', Financy, no 11, 2001.
20.  Razvitie predprinimatel'stva I predpriiatii v Rossiiskoi Federatsii. Politicheskie printsipy I rekomendatsii, OECD: Centre for Cooperation with Non-OECD Countries, 2001.
21.  V. Skvoznikov and N. Azernikova, 'Problemy otsenki tenevoi ekonomiki', Voprosy statistiki, 2001, no 12, pp. 18-22.
22.  P.S. Filippov and T.M. Boiko (eds), Sotskal'no-ekonomicheskie problemy Rossii: Spravochnik, 2nd edition, Norma, SPb, 2001.
23.  P.S. Filippov (ed), Sotsial'no-ekonomicheskoe polozhenie v Rossii. Spravochnik, Norma, SPb, 2001.
24.  I. Trapichkin, 'Dizainerov vstrechaiut po odezhde', Severo-Zapad, no 3, 2002, pp.10-13.
25.  L.I. Yakovson, Ekonomicheskie metody upravleniia v sotsial'no-kul'turnoi sfere, Ekonomika, Moscow, 1995.

APPENDIX  2
St Petersburg cultural sector statistics

The statistics in St Petersburg fall far short of covering the activity all functioning establishments, a fact conditioned by their dispersal between the different ministries and the lack of reporting by many of the newer organisations.  Of all the indicators, the most developed statistics relate to libraries, but even here figures do not always add up.  Thus, according to official data from the Administration in 1999 there were 1270 libraries in St Petersburg (state, public, further education, college and technical college, school, museum and theatre), including 96 trade union libraries.  At the same time the reference work Guide to the Libraries of St Petersburg (1993) included information about 1340 libraries as having a significant volume of books or a unique collection - and this was without including libraries of schools, military units, trade unions and the scientific-technical libraries of the factories and plants.  The divergence of figures is linked to the different types of library included by the different data-recording agencies.

	1995	1996	1997	1998	1999	2000	
Number of libraries	422	393	380	374	363	358	
Including children's libraries	59	59	59	59	59		
Number of books, magazines, etc (m)	54.1	53.3	53.1	53.2	52.6	52.7	
Including children's	3.5	3.5	3.5	3.5	3.5		
Number of readers (thousands)	1241	1254	1244	1390	1259	1.2*	
Including at children's libraries	276	289	300	309	311		
 *million

Libraries ' funding depends on their form of governance:  state libraries are funded from the Federal Budget, city district libraries by the municipal budget, specialist ministry libraries by the appropriate ministry (eg the Naval Academy funding is from the Ministry of Defence), trade unions' collections - from the funds of the unions, educational establishment and school libraries - from the resources of the City Administration's Committee for Education.  There is no shared library funding.  An exception can be noted only for collections of Federal significance, when full building renovation or construction of new premises is needed - part of the resources may then be received targeted from the city budget.

City statistics take account of the activity of 73 museums, the number of visitors to whom were 17,300,000 in the year 2000.  However, according to Administration data the city has 181 museums, while information from the Institute for Cultural Programmes lists 170 museums, 167 school museums, museum galleries and exhibitions in schools and further education establishments.  The overwhelming majority of these are state property (two are private).

More detailed data exist relating to the work of 52 Petersburg museums (the largest) under the authority of the RF Ministry of Culture.  These museums occupy 412 buildings, with a general area of 1,164,873 cubic metres and their joint collections total 7,317,700 exhibits.  The general total of full-time workers is 7,770, including 2384 professional staff and guides.

In St Petersburg there are some 70 galleries and halls showing current art, holding around 400 exhibitions pa. 25 enterprises work in St Petersburg as organisers of exhibitions.  Some galleries are commercial organisations engaged in successful selling and making a profit; others galleries exist through sponsorship or patron's money.

The state statistics monitor the work of some 50 theatres in St Petersburg, but the Administration's data covers 106 theatres, including five administered by the Leningrad Region authority.

The number of premises occupied by 35 theatres in the authority of the Ministry of Culture totals  81, accommodating a total audience of 16,693.

Number of theatre seats in permanent establishments per 10,000 population in 1999

Average number of visits to theatre performances per 1000 population (1999)

Theatre performances and attendance

There are some 19 creative concert-giving collectives which do not always have permanent premises for performances, but whose total of staff is 2430 - including a total artistic and performance personnel of 1560.  The concert halls in which concerts may be presented also have their own performing ensembles (for example, the St Petersburg Philharmonic has two orchestras, the Academic Kapella has a choir and an orchestra).

The funding of concert halls depends on their form of governance:  state concert halls are funded from the Federal Budget, city concert halls from the municipal budget, those under the aegis of ministries or other official offices by the appropriate ministry etc.  There is no shared funding.  An exception may be noted only for concert halls under the Federal authorities in cases of fundamental modernisation/renovation and new buildings - as with theatres, part of the necessary resources may be targeted from the municipal budget.

Concert activity

Lenfilm, Russia's major film studio is of course located in St Petersburg, providing premises for several creative cinema associations to make productions.  Altogether St Petersburg is the location of some 23 functioning film studios, the majority of which belong to the state.  Specialist staff for filmmaking graduate from the Institute of Theatre, Art and Cinematography, the Institute of Cinema Engineers and the St Petersburg Academy of Theatre Art.

	1995	1996	1997	1998	1999	
Number of permanently operating cinemas	121	120	90	90	83	
Audience capacity (thousands)	53.3	49.5	39.4	38.7	34.1	
Attendance (millions)	1.7	1.2	1.0	1.2	1.7	

In the Soviet period St Petersburg was the location of Palaces and Houses of Culture, including concert halls, cinemas, cafés, accommodation for clubs and classes (language study, dance, etc), the majority of them belonging to trade unions, but also to ministries and individual large enterprises.  There remain some 30 club establishments plus 49 belonging to different ministries, employing all told some 1009 full-time workers and with auditoria and lecture halls able capable of seating audiences totalling 11,935.

Cultural leisure activity in clubs

In the recent period other forms of clubs have appeared, also designed for entertainment (jazz clubs, art cafés, clubs such as Fish Fabrique, Griboedov, Decadence, Mama, etc).  Internet cafés and clubs have also become widespread.

St Petersburg's cultural life is also enlivened by the contributions of international and ethnic institutions such as the Goethe Institute, the Alliance Francaise, the British Council and the Jewish Community Centre.

According to data of state statistics the number of St Petersburg newspapers has in different years ranged between 100 and 200 - many periodicals existing for only a short time.1

	1995	1996	1997	1998	1999	
Publication: books/brochures						
Individual publications	3488	3559	4535	4244	4906	
Print runs (millions)	30.6	30.6	37.2	23.8	33.3	
Periodicals and part-works						
Number of publications	152	190	247	219	215	
Individual print run (millions)	1.9	2.9	3.0	2.6	3.2	
Annual print run (millions)	34.9	74.6	56.1	42.8	72.3	
Papers						
Number of publications	198	148	214	179	194	
Individual print run (millions)	8.1	5.4	12.6	7.4	3.8	
Annual print run (millions)	374.4	237.0	499.8	220.3	168.0	
 
Among the daily newspapers the most largest print runs belong to papers serving the Region, especially Sankt Peterburgskie Vedomosti, Vesti, Nevskoe Vremia, Smena, Vechernii Peterburg, and Delovoi Peterburg.  Among the weeklies the leaders are national papers such as Argumenty i Fakty, Komsomolskaya Pravda, and the magazine Liza.

Of some 200 publishing houses in St Petersburg the best know are: Lenizdat, Avrora, Limbus Press, Azbuka, Akademicheskii Proekt, Norma, Piter, Ars, Slavia and Mir Isskustva.  Among them there are both state organisations and private companies.  There are more than 500 printers in St Petersburg with an overall volume of sales of $150 million.  In the sphere of book printing and publishing, the share of  'kontrafakt' production is 70 per cent.  As a rule this is the result of illegal pre-publication issues of books or publications translated without the permission of the copyright holder.

In St Petersburg there is state support for publishers, in particular in 1999 there was RR.1,339,000 in the budget of the Committee for the Press and Public Relations for spending on he state support of publishing, and in 2000 RR.5,125,000.  Besides this, the expenditures of the Committee in funding work to develop and technically re-equip the publishing and print sub-sector and the networks for distribution of books, magazines and papers was in 1999 RR.3,675,000 and in 2000 RR.10 million2.  Publishing houses are supported on a competitive basis on the principle of partial funding.  State subsidies lower the cost price of books and make them more accessible. The subsidy relates primarily to books devoted to the history of St Petersburg and its Tercentenary: eg, St Petersburg's Decorative and Applied Art Over 300 Years, Chronicle of the City of St Petersburg, Architectural Guide to St Petersburg, etc.

Information agencies producing reports and news programmes are widespread in St Petersburg.  One of the most importance is the Interfax Agency (in St Petersburg: Interfax Severo-Zapad), which is part of an international information group, Interfax Information Services.  The output of Interfax is the main component of information about Russia, the CIS and the Baltic States in the networks of the major international agencies.

St Petersburg's airwaves are filled by more than 30 radio stations, 14 covering the whole city area. Despite this abundance, the steady leader is Radio Peterburg, attracting some 40 per cent of the city's inhabitants to its programmes .3  The main radio station in the company OAO TRK Peterburg is in St Petersburg.  Besides this, the infrastructure includes radio-transmitter nodes , the Centre for Sound Technical Services, the Centre for Radio Broadcasting and Radio Links.

The majority of radio stations offer listeners a menu of news and music.  Radio Peterburg is the only one whose programming fully represents journalism, history, literary classics, shows and poetry.  The most successful formula:  'Current-Adult-Contemporary' (popular contemporary Russian and foreign melodies) is adopted by the stations Europa Plus, Modern, Eldoradio, and Monte Carlo. The formula 'Russian-Current-Adult-Contemporary' (popular current Russian melodies) is followed by Radio Baltika and Russkoe Radio.  'Oldie-Adult-Contemporary (mainly melodies of the 60s-80s) suits Melodiia, Retro, Leningrad and Nostalgia;  'Contemporary Hit Radio' (only the most popular hits, but also songs of last 3-5 years) - Maksimum, Rock-Oriented SNR, HIT 90.6, Mainstream SNR, RE-Cord and Dance-Oriented SNR.

There are 14 TV broadcasters in St Petersburg (in the metre band:  ORT, RTR, Fifth Channel, Sixth Channel, Eleventh Channel:  the rest, including NTV are in the decimetre range).  The Leningrad Radio and TV Broadcasting Centre transmits both TV and radio channels.  The four main cable networks,  besides  their own services, are developing a system  foroffering broadcast channels in areas where reception is difficult.  A significant number of TV receivers receive no more than 4 or 5 channels, and only ORT, RTR and the Fifth Channel cover the entire local audience.  Eighty per cent of viewers can view two metre-band channels (Sixth and Eleventh) and NTV in the decimetre range.  The signals of the rest of the decimetre broadcasters reach from 60 down to 25 per cent (or even less) of the potential viewers.4 OAO TRK Peterburg is the main regional TV company, broadcasting on five channels in the metre band.  The TV companies receive subsidies from the city budget amounting to almost half the budget of the Administration's Committee for the Press and Public Relations.

In spite of the fact that in Russia hundreds of licences are issued to private TV and radio stations, they are not obliged to show Russian films and programmes, or to disseminate Russian culture.  This is because there is no quota system guaranteeing Russian products a share of TV, radio, and cinema programming, as - for eg - in Poland, Hungary, Czech Republic, etc.

Seventy per cent of the St Petersburg sound-recording market is occupied by private-company products.  KDK Records (which has its own studio for sound recording, a plant for the production of compact cassettes and collaborates with local publishing houses) is the partner and distributor of the major Russian sound-recording companies, such as ARS, MONOLIT, MOROZ REC, KLASSIK KOM and many more.  They reproduce licensed audio and video cassettes (wholesale) and CDs, and engage in the production, reproduction and recording of original audio and videocassettes, CDs, and CD-Roms.  Among other major St Petersburg companies engaged in production and distribution of compact discs, audio cassettes, video cassettes one may note also ZAO BOMBA-PITER, Caravan Records, KAN-KAN, FULLDOZER, Severnaya Zvezda Records, Studiia Signal, Zvezda Records.  In the sphere of video, the illegal market occupies some 80 per cent.

Activity in the sphere of design includes many sub-sectors:  architecture, furniture, glass, and web-design.  In each of these there are represented between 10 and 100 designers, young designers of clothing have the possibility to show their designs at three annual competitions, but also two seasonal fashion shows; six designers have their own boutiques.   A special feature of the Petersburg market is small ateliers where exclusive clothing is made to individual order.

Notes
1. A. Alekseev, 'Novaya rossiiskaya gazetnaya pressa: tipologicheskaya struktura I ee ismeneniia (1988-97gg)', Teleskop: Nabliudeniia za povsednevnoi zhizn'iu peterburzhtsev, no 1, 1999, p. 2.
2.  Yu. Vladimirov, 'Biudzhet podderzhal televidenie I izdatel'stva', Prospekt Sankt-Peterburga, mart-aprel, 2000.
3. O. Ermolaeva, SREDA, no 5 (11), May 1999.
4. A. Pushkarskaya, 'Podrobnee o televidenii, SREDA, no 8, August 1998.