The Impact of Local Government Units on the Positioning of Culture in Society

Abstract

Local self-government units (LSUs) play a key role in shaping cultural policies and funding cultural activities. However, the dominant model, which relies almost exclusively on public budget funds, exhibits structural weaknesses: it passivises stakeholders, limits innovation, and creates dependence on political cycles. This paper analyses the impact of LSUs on the positioning of culture in society through a comparative analysis of cultural budgets and policies in four Croatian cities: Osijek, Rijeka, Split and Zagreb. The central thesis is that LSUs need to transform their role – from primary funders of cultural content towards developmental actors that strengthen capacities, foster networking and stimulate cultural entrepreneurship. Drawing on budgetary data for 2020–2024, European and Croatian cultural policy literature, and the identification of structural limitations in the prevailing grant-based model, the paper proposes a set of transformational mechanisms: capacity development programmes, cross-sectoral networking platforms, cultural entrepreneurship incentives and innovative financing instruments including matching funds and cultural vouchers. The paper situates these proposals within the context of Croatia's newly introduced Cultural Card (Kooltura @18) pilot. In this way, culture shifts from a budget expenditure to an investment with measurable social and economic returns.