Art market in Kazakhstan: the opinion
ZHIBEK KARAMANOVA
Founder of KEREMET Holding law firm,
KEREMET Art project
Any type of investments – whether it is the purchase of the apartment or jewelry, car, furniture or stocks of large corporations - is either the result of the lengthy analysis, weighing all “for” and “against”, or just the emotional purchase if we talk about inexpensive assets. The art investments are also about almost the same. If the painting or sculpture is not extremely expensive, the purchase is mostly driven by the emotional decision as if ladies buy one more bag, and men – follow the new series of phones or other gadgets. However, if the art object is expensive, then certainly regardless of a tremendous love towards the love and dedication to receive the aesthetic joy, even the rich art collectors, who can afford the purchase, will think about it, and purchase or invest to art objects only if there is additional “For” argument: if the art object is attractive form investment point of view.
Art market is rather specific not only in Kazakhstan, but also in other countries. Sale and purchase of art objects, opening of new galleries, new names, organization of exhibitions of Kazakh artists abroad and other certainly takes place in Kazakhstan, however, there is other question – who knows about it?
KEREMET Art researched the art market within the paintings and sculpture fields in Almaty and Astana, and we came to conclusion that unfortunately the players of art market as artists, galleries, curators do not introduce much any kind of new technologies in order to make the art popular among the population, common population who is not related to the creative industries. Exhibitions of artists are mostly visited by the artists themselves, colleagues or rather small circle of owners of art galleries which makes rather small networking where the creative cluster socialize with themselves only. And what is the goal of any artist or art gallery? – not only to attract large amount of visitors who are friends, colleagues and relatives coming to the opening of the exhibition with delicious catering, but also to sell the works. And whom we can they sell to, if all visitors of exhibitions are practically the same people? They physically and economically cannot afford buy all works even if they want to.
Therefore, we, for example, are the first in Kazakhstan who launched art tours around the city where anyone can visit workshops of artists, galleries, backstage of theatres. And this really does work. Participants of our art tours are very different people professionally and by age, mostly common office employees who always live in Almaty but have never been in the gallery or Arts Museum. For them it is the chance to make their weekend different or spend the birthday differently, for example. It is important to note though that this specific target audience can also become the new participants of the art market – new art collectors and buyers of art. Moreover, we already had precedents when during our art tours people were buying the paintings from the artists.
It is important to broaden the range of those who at least has small interest in art and reviews the paintings as perfect gift to themselves and friends. Usually those are not art professionals, and it is important to note it while development of the art market strategy in Kazakhstan.
Art market will exist and develop if first of all there are created a demand and some constant fashion for the purchase of art objects, and secondly, when leading analytics and financial institutes of Kazakhstan following the example of foreign colleagues will start recognizing the art objects as a liquid asset. Demand can not appear by itself, the interest shall be motivated, the demand shall be created, and liquid asset get a specific characteristics. Certainly, for a lot of people the art seems to be something vague and not understandable, or vice versa too complicated and again not accessible to everyone. Therefore, out legislators and banks are not ready yet to accept and recognize art objects as a security during the issuance of the loans. How to evaluate the art object? - As an asset like real estate or furniture? Do we need to engage only financial analytics and appraisers or may be there is a need to attract art critics who possibly could explain the additional higher cost of the painting? Even if to estimate the art object upon minimum amount, then in the event of withdrawal of security how and upon which cost will be the object sold? The other important question – to whom will it be sold? These issues are almost not regulated in legislation at all, and many leading financial institutes did not even start studying it.
While discussing the art market development, the one shall review the development of international cooperation with partners and colleagues or direct sales of Kazakh art objects abroad. The international cooperation between museums, galleries and artists in the form of temporary exhibitions is more or less being developed in the country, however direct sales are not really developed yet: and it does not mean that no one abroad wants to buy Kazakh artists. In this regard it is important to note the limitations for export of cultural values. The legislation of Kazakhstan does not have the specific definition of such term – depending on the date of creation of art object or existence of some significant details. Therefore, if the artist and his team put a lot of efforts to make the artist popular in the region, there is always possibility of subjective evaluation of experts according to which the painting which famous wanted to take abroad will be considered as cultural value. The artist though will not be that excited though for such high evaluation of his work, since recognition of the art object as cultural value shall mean that there will be rejection in providing him the permission for permanent export of the art object abroad.
The legislator shall seriously consider the issue of supporting the new initiatives on development of art market in the country and popularization of art support by the art patrons and sponsors. If to properly regulate such niche and make all transactions official and transparent, eliminating above mentioned limitations, the state will receive only the profit in form of increase of budget by taxes, arising out of entrepreneurial activity, and improvement of image of the country as of state with diversified economy.