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Economic landscape

Funding the public good

“We’ve been hearing from people, ‘Don’t raise our property taxes. Don’t raise our property taxes,’” said Alderman Mike D’Amato, a member of the Library Board of Austin, Texas, which earlier this month cast a unanimous vote to close its Villard Avenue branch, the least busy of the city’s 12 neighborhood libraries. ‘Do you want your taxes cut?’ D’Amato asked. ‘Do you want your services the same? Because it’s impossible to do both.’ ”25

“My library’s reputation is predicated on what it owns. How will it maintain that reputation as it moves to digital? A new model needs to be developed.”

—Director, Academic Library

There has been a worldwide shift in the past 15 years or so from public to private support for and provision of goods and services. This can be seen in a wide variety of sectors, such as telecommunications, railroads, hospitals, public radio, gas and electricity utilities and higher education. Increasingly, costs are moved to the consumer.

It is interesting to study the varied approaches to the funding of public programs in emerging economies where historical approaches are either not available to use as guides or are simply no longer adequate to match surging community needs. The following look at the funding of public libraries in the world’s fastest growing economy, China, highlights the variety of solutions that can emerge when citizens, commercial enterprises and governments collaborate and compete for public programs.

Along with a general shift to privatization of public services in the developed countries, there has been an increasing emphasis on assessment and accountability—although these are hardly new societal expectations.

John Cotton Dana, a key figure in 20th century librarianship, wrote in 1920:

“All public institutions…should give returns for their cost; and those returns should be in good degree positive, definite, visible and measurable […] Common sense demands that a publicly-supported institution do something for its supporters and that some part at least of what it does be capable of clear description and downright valuation.”29

What was true in 1920 still holds today. Accessment and accountability, then, are not new themes. To measure accountability, libraries have traditionally focused on their collections—the size, the variety, the utility as measured by circulation.

In a world where cuts in materials budgets are commonplace and where content is not scarce, trends suggest that “clear description and downright valuation” of libraries must place them squarely and unambiguously in the larger network of learning resources that includes museums, public broadcasting and community organizations that are part of a knowledge-based society.

Robert S. Martin, the Director of the Institute of Museum and Library Services writes:

“Libraries of all types provide a broad range of resources and services for the communities they serve. They preserve our rich and diverse culture and history and transmit it from one generation to the next. They provide economic development. They provide extraordinary opportunities for recreation and enjoyment. And they serve as a primary social agency for education, providing resources and services that both support and complement agencies of formal education.”30

The challenge, then, is how to continue to adequately fund the public good.

Funding the public good in China

map of ChinaLibraries as cultural centers in large, new communities in Guangzhou, China

Huang Qunqing and Zhang Xuhuang

The Science and Technology Library of Guangdong Province

People’s Republic of China

Guangzhou (population 10 million) is the capital city of South China’s Guangdong Province and has been developing rapidly in recent years. Its GDP grew 12 percent in 2002. Residents’ incomes are increasing and people are investing in cars and new homes. Many large new housing estates have been built in rural areas of the province around Guangzhou. Real estate developers are adding many interesting new amenities to their developments in efforts to attract buyers such as regular bus service to the city, recreation facilities and community libraries.

A survey of ten large, new country housing estates conducted by Huang Qunqing and Zhang Xuhuang of The Science and Technology Library of Guangdong Province found that each development had, or had plans to construct, a community library. Ranging in size from small facilities of approximately 100m2 to three-story facilities, each library surveyed had unique operating and funding strategies.

One of the largest community libraries, the Guangzhou Country Garden Library, is a 685m2 facility located on the top floor of the estate’s clubhouse. Built in 1999, the Guangzhou Estate Company invested 10,000 RMB to purchase the initial collection of 12,000 books, 90 magazine subscriptions and 40 newspapers. The estate company maintains an operating account, financed by a resident’s realty management fee, to replenish books and fund librarians’ salaries. The library is free for residents of the community.

Opened jointly by the estate company and the Guangzhou municipal library, the Riverside Garden Library is a free library that not only serves residents but also farmers and other citizens in the neighboring communities. The real estate company and the municipal library jointly manage the library. The Guangzhou library established and maintains the book collection and provides professional training. The real estate company is responsible for the facility, staff and the replenishment of magazines and newspapers.

Other models include the library in Guangdi Garden, which opened as a bookstore. Residents can purchase a reading card for 50 CNY that gives them the right to read or buy the library/ bookstore books. The library is run on contract with the bookstore owner who must agree to provide abundant free browsing and reading materials.

Several estate companies have entered into cooperative arrangements with schools to build branch libraries in their housing estates. Finally, other communities have chosen to operate local libraries that are stocked, staffed and maintained by the residents.

The entrepreneurial nature of recent real estate development in China has been good for the proliferation of libraries, but the financial sustainability of many of these new real estate-financed libraries is in question over the long run. Many estate clubhouse programs are running at operating deficits that may make it difficult to continue to sustain the current level of library investment. The library is a public good, not a commercial business, so it may be hard for developers to maintain funding.

Residents of these new estates recognize that libraries and cultural facilities are desirable features of their communities, but ones that will require funding in excess of estate management fees. There is an increasing push among residents for local government support of libraries and other public services.

[Excerpted and edited from a paper presented at the World Library and Information Congress: 69th IFLA General Conference and Council, August 2003].

China—profile of a growth economy26 China—manufacturing center27

Comparison of the economies of Italy, China, France, and Britain

China—GDP estimated growth26

China’s annual GDP growth was 7.9 percent from 1995–2002, making it one of the world’s fastest growing economies. The chart above shows China’s estimated GDP for 2008 in relation to three other industrial countries.

World’s leading producer of these goods:

1990


2002


  • Cotton textiles
  • Television
  • Cotton textiles
  • Televisions
  • Refrigerators
  • Cameras
  • Cell phones
  • Desktop PCs
  • DVD players
  • Bicycles
  • Motorbikes

In 2002, China became the first country in more than 20 years to attract more foreign investment than the United States.27

China $53.2B
United States $52.7B

China—education and technology26

China’s population is 1.3 billion (July 2003 est.)28

China graduated 2 million technicians and engineers in 2003.27

In 2001, 110 out of every 1,000 people in China owned a mobile phone.26

In China, there are 4 to 6 million new cell phone subscribers every six months.27

 

Chart showing spending on education in China

If China continues to fund education at 2.2 percent of GDP, by 2008 Chinese economic expansion will fund a 50-percent growth in education spending.26

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