WAIFC Report on “Art - An Integral Ingredient for Financial Centers”

A recent working paper released by WAIFC sheds light on the deep connections between the financial and art worlds. This comprehensive report explores the intricate relationship between art and international financial centers (IFCs), highlighting art's diverse roles within these influential hubs and the initiatives aimed at supporting the arts.

Art is not just valued as an investable asset class for institutional and private investors; it also serves as a source of inspiration and soft power for cities on the global stage. Many of the world's leading art capitals are situated within or near major financial centers, offering artists unique opportunities for exposure, community, and access to arts infrastructure.

However, the allure of financial centers comes with challenges. While artists flock to these cities for opportunities, they often grapple with high living costs and financial insecurity. Nevertheless, a vibrant arts scene enriches the cultural capital of financial centers, attracting more professionals and driving urban development.

The WAIFC project underscores two pivotal aspects:

1. the manifold roles of art—from visual to performing arts and gastronomy—in enhancing the attractiveness and visibility of financial ecosystems
2. the diverse strategies employed by financial centers to bolster their art scenes.

The report targets a broad audience, including art investors, artists, policymakers, and urban planners. Perspectives from various WAIFC members elucidate how financial centers are integrating art and finance through innovative initiatives. These initiatives encompass arts funding, infrastructure development, education, and fostering connections between artists and financiers.

Arts funding and infrastructure are paramount for artists' sustainability within financial centers. Initiatives include grants, sponsorships, and residencies aimed at nurturing artistic endeavors. Moreover, efforts are underway to bridge the gap between artists and business communities, facilitating interactions through events and programs.

WAIFC members champion arts education and higher visibility to foster greater interest in local art scenes. Financial centers aim to cultivate domestic and global audiences by promoting cultural appreciation and elevating their cultural profile.

In essence, the convergence of art and finance presents both challenges and opportunities. The WAIFC working paper provides a foundational analysis of these dynamics, paving the way for further exploration of best practices and impact assessments in leveraging art for the prosperity of international financial centers. Through collaboration and innovation, financial centers are poised to cultivate thriving art ecosystems that benefit artists, investors, and society at large.

You can download the working paper here.