Moran AM, et al., editors. Film Policy: National, international, and regional perspectives. 1st ed. London (United Kingdom): Routledge; 1996. 8, Film Policy in Latin America; p. 142-161.
8
FILM POLICY IN LATIN AMERICA
Randal Johnson
In Argentina, Brazil and Mexico, the countries with longest and strongest cinematic traditions, film industries have developed in a cyclical pattern in which moments of success have been followed by periods of decline and crisis. In smaller countries filmmaking has tended to be sporadic at best (…). Political turmoil, economic instability, high inflation rates and debt crises have contributed to the instability of national industries.
During the last three decades television has consolidated itself as what Thomas Elsaesser calls the ‘hegemonic force’ in most national contexts (Elsaesser 1993:123). With the ready availability of recent feature length films on video cassette, the home has replaced the movie theatre as the preferred venue for film viewing (…). […] Latin American film industries have by and large failed to do so. In countries such as Brazil, which possesses the fourth largest commercial television network in the world, TV Globo, there is little integration between the two media.
During a film festival held recently at the Museum of Image and Sound in São Paulo, one of the participants in an organized debate suggested that ‘film and video are things of the past’ (Coelho 1994:13). […] (…) established exhibition circuits have been unable to hold their own, much less modernize facilities, resulting in the dramatic decline of theatrical markets throughout Latin America. Transnational cultural products, including, besides the cinema, the programming of broadcasters such as ESPN, HBO, MTV and CNN, transmitted—in English, Spanish and Portuguese—via cable and satellite delivery systems, have become even more ensconced as a significant part of the daily fare of audiences throughout the hemisphere.
[…] Film policies have developed over time and with different configurations—depending on the specificities of the national context and the structure of the industry—in order to guarantee at least a modicum of stability for future development and to ensure the production of culturally serious or aesthetically experimental filmmaking which might not survive if subject to exclusively commercial measurements. (…) old paradigms (…) based by and large on corporatist support of (…) a portion of the production sector (…) at the expense of other sectors (…) have revealed their limited effectiveness. Theatrical markets continue to decline, films continue to be unprofitable (…). In some cases existing structures of film policy have been abolished (Colombia), revived and strengthened (Argentina, Venezuela), transformed (Mexico), or have simply imploded (Brazil).
OCCUPIED MARKETS
Any discussion of film policy in Latin America must be set within the context of the US film industry’s historical domination of national markets. […] The expansion of home video has only served to reinforce this almost absolute domination. Unable to depend even on home markets for a return on investments, and lacking access to significant ancillary markets, unprotected Latin American film industries have lacked the capital necessary to sustain continuous production on a large scale. (…) the result has been the underdevelopment (…), despite short-lived moments of success (e.g. the ‘Golden Age’ of Mexican cinema, the Brazilian chanchada).
Throughout Latin America, furthermore, the film going public historically has been conditioned by the standards of European and American cinema, which dominated local markets (…). These films displayed levels of technical perfection impossible for incipient national industries, and (…) they imposed certain cultural models of the ‘proper’ or preferred form of cinematic discourse. Audiences became accustomed to that form and have been reluctant to (…) alternative forms, even if produced locally. Latin American cinema has found itself in a double bind. On the one hand, it has not had the economic resources to equal the technical achievements of advanced industrial countries, and on the other, it has often lacked audience support for introducing different modes of filmmaking.
[…] Elsaesser goes on to say that the independent cinemas that had emerged, often with a politically or aesthetically radical thrust, faced the option of either coexisting with Hollywood on Hollywood’s terms, or virtually ceasing to exist
CINEMA/STATE
When state support has waned, as in Argentina after the fall of Peron in 1955 or during the López Portillo administration in Mexico (1976–82), the strength of the industry has also declined (Schnitman 1984:39–40; Maciel 1993:33). Feature films in Colombia were almost non-existent until the establishment of the Fondo de Promoción Cinematográfica (FOCINE) in 1978. Film production in Venezuela increased steadily in the 1980s after the creation of the Fondo de Fomento Cinematográfico (FONCINE) in 1981. The strongest period in the history of Chilean cinema coincided with the Unidad Popular years and Allende’s election to the presidency, when the cinema became incorporated into government policy. The state has been heavily involved in the re-emergence of a culturally and politically significant Argentine cinema in the post-dictatorship period—what has been called a ‘cinema of redemocratization’—through the activities of the Instituto Nacional de Cinematografía (Newman 1993). The same has occurred in relation to the recent resurgence of Mexican cinema, which has been supported by revigorated policies of the Instituto Mexicano de Cinematografía (IMCINE). To a very large extent the hopes of Brazilian filmmakers rest on the promise of renewed investments in the film industry by recently elected president Fernando Henrique Cardoso.
The modes of film production, distribution and exhibition are shaped by a variety of industrial, economic, cultural, aesthetic and ideological factors. As an industry, the cinema in Latin America is affected by state measures in ways not affecting other art forms. (…) it depends largely on imports for virtually all production equipment, as well as raw film stock, it is sometimes dramatically affected by changes in import or exchange policies. […] Development has been hindered by foreign trade accords in which, bowing to pressure from Hollywood, governments have agreed to the principle of free flow of motion pictures across international boundaries. (…) in Brazil trade accords have made it lessexpensive to import foreign prints than film stock. In short, even without direct government protection of intervention, Latin American cinema is in many ways dependent on or shaped by the state and its policies.
Cultural policies in different national settings by necessity vary according to the set of cultural and social values at stake. Rationales for state cultural policies are often cast in terms of the notion that culture is an integral part of development and that as the ultimate guarantor of a nation’s cultural unity and identity, the state has a legitimate responsibility to protect society’s cultural memory and heritage, to defend its cultural values, to stimulate cultural production, and to ensure that culture is not defined exclusively by market criteria.
Governments have their own interests and their own reasons for intervening—or not intervening—in support of different sectors of cultural production, and those interests may not always coincide with those of the cultural producers. By its very nature, the state determines the parameters within which artists may act, and in most cases they have relative freedom as long as they stay within these parameters.
The state, Weber suggests, has a monopoly on legitimate coercion and violence, which inevitably functions as a component of its policy towards culture. Although they can and often do control the distribution of cultural goods through censorship and repression, most states would normally prefer to control by indirect constraints and consensus. […] Cultural policies are never simply a question of ‘defending’ a national identity or ‘supporting’ certain forms of cultural production.
Cinema-state relations are a two-way street. Since at least the 1920s industrial groups or professionals in different Latin American countries have requested state protection and aid, and governments have responded in accordance with their own priorities and designs.
PROTECTIONIST POLICIES
Octavio Getino suggests that approaches to film practice and film industry development in Latin America have been shaped by two opposing strategies, one based on ‘economism’, which sees the film industry and its products in purely economic terms, the other based on what Getino calls ‘ideologism’, or a privileging of the ideological and cultural aspects of the cinema over commercial potential (Getino 1987:9–11) […] The fundamental opposition between commercial and cultural interests is often at the root of tensions which have arisen within Latin American cinema over the last few decades and has often shaped state policies of support of local industries.
By its very nature a film industry produces objects which are both symbolic goods and economic commodities. In most contexts the cinema’s viability as a form of artistic expression depends on the availability of production financing, which in turn depends on the film’s potential to attract a fairly wide audience and attain success in the market. The artistic and economic aspects are often intricately intertwined. In ideal terms, one might suggest that state policies towards national film industries have as their goal the creation of a situation in which the production of artistically or culturally relevant films is guaranteed through measures designed to strengthen the industry as a whole. The ideal, however, rarely becomes reality.
Jorge Schnitman distinguishes between restrictive, supportive and comprehensive protectionist policies. A restrictive policy, which includes such measures as screen and import quotas as well as import tariffs and customs duties, is designed to give the local industry some breathing room by impeding a complete takeover of the local market by foreign concerns. A supportive policy includes direct state support of the industry in the form of bank loans and credit, prizes, production subsidies and other forms of film financing, assistance in reaching foreign markets, and training of film industry technicians. […] A comprehensive state policy would include both restrictive and supportive measures (Schnitman 1984:46).
In Latin America, some kind of protectionist legislation is in effect in Argentina, Brazil, Colombia, Cuba, Mexico, Nicaragua, Peru and Venezuela (Getino 1987: Table 46). (…) those countries have also imposed screen quotas—the compulsory exhibition of national films—which have often been the backbone of film policies in Latin America.
Screen quotas have taken various forms, including the forced exhibition of national short films in each programme of foreign films, the establishment of a certain number of days per year of compulsory exhibition, the stipulation of a percentage of films exhibited which must be locally produced, or the setting of a proportion of national films to be exhibited in relation to numbers of foreign films released.
In Latin America, compulsory exhibition legislation first began to appear in 1932, when the Brazilian government implemented a policy mandating the exhibition of a national short film with every programme of foreign films. The Mexican screen quota dates from 1939, when the Cárdenas government (1934–40) made the exhibition of one domestic film per month mandatory. In Argentina, compulsory exhibition legislation was first implemented in 1944. Screen quotas in Colombia, Peru and Venezuela are more recent, dating only from the 1970s. (…) after the bottom dropped out of the Brazilian film industry in the late 1980s and early 1990s, the quota became a dead letter, and in Mexico, following new legislation inspired by neo-liberal, free market ideas, the quota will be gradually phased out over the next few years (…).
The major benefit of the screen quota is that it does guarantee some space in the market for national production which otherwise might not find exhibition outlets because of the almost total domination of domestic markets by foreign films. In this sense, it may well be a necessity for the continued existence of national filmmaking in some contexts.
First of all, whereas governments can legislate the compulsory exhibition of national films, they cannot legislate compulsory attendance by a public long conditioned by the products of Hollywood. Second, quotas have been difficult to enforce, since exhibitors have long seen them as an unwanted (and unwarranted) government imposition. In somecases, exhibitors have simply refused to fulfil the quota.
In one sense—and this has long been at the crux of exhibitors’ arguments against screen quotas—compulsory exhibition forces one sector to risk a potential financial loss for the benefit of another. Exhibitors have tended to respond in two ways: through the courts and by producing their own ‘quota quickies,’ that is, low cost films made exclusively to fulfil compulsory exhibition obligations. In Brazil, production by exhibitors gave rise to the soft-core pornochanchada in the 1970s and to hard-core pornography in the 1980s. […] One contributing factor for the decline of FOCINE in Colombia (…) is that exhibitors revolted when the government attempted to increase a tax on box-office receipts—FOCINE’s major source of income and, consequently, Colombian cinema’s major source of production financing—from 8.5 per cent to 16 per cent.
THE GOOD, THE BAD, AND THE UGLY
Without a screen quota and other protectionist measures, Brazilian cinema very likely would exist only on the most crass commercial basis, if at all. At the same time, state policy towards the film industry has clearly led to a loss of profits for exhibitors and is at least partially responsible for the current decline of the exhibition sector, which has been pernicious for the Brazilian film industry as a whole.
The relationship between the state and the exhibition sector deteriorated steadily over the last two decades, primarily because of exhibitors’ resistance to increasingly interventionist government policies. In 1974, O Estado de São Paulo ran an article with the headline ‘The great duel of national cinema’, referring to (…) between exhibitors and state-supported producers as analogous to a Western movie, with the producer as hero, the exhibitor as villain, and the state as sheriff. […] In its report for the second half of 1988, Concine lists suits filed by thirty-two exhibition companies (not counting multiple co-litigants) representing over 10 per cent of the total number of theatres in Brazil (Concine 1988:314–17).
As of the late 1980s, Brazilian cinematic legislation stipulated that exhibitors must show national films at least 140 days per year, regardless of the number of Brazilian films produced in a given year or the quality of those films. Although exhibitors could negotiate with distributors of foreign films, they were obligated to pay a minimum of 50 per cent of net income for Brazilian films. They were also obliged to show a national short subject as part of each programme of foreign films, purchase standardized tickets and box-office income recording sheets from Embrafilme at inflated prices, and keep Brazilian films in exhibition as long as the average of total spectators for two weeks or more equalled 60 per cent of the previous year’s weekly average.
In return, exhibitors received virtually nothing from the state except the disdain which has long characterized producers’ attitudes towards the sector. Although it was among Embrafilme’s attributes to attend to the needs of the sector, it refused to divert funds from production and did not even provide subsidies or low-interest loans to help them renovate their equipment and theatres. The result of the authoritarian imposition of unwelcome measures was a decline in income and a deteriorating sector which led to the closing of many theatres, especially in the interior of the country (…). […] The proof of the failure of the Brazilian government’s policy towards the exhibition sector—and towards Brazilian cinema as a whole—is the dramatic decline in the number of theatres in operation in the country, now under 1,000 for a country of 150 million. […] Thus foreign films have an additional advantage since they have normally covered costs and made a profit prior to entering the Brazilian market.
In Venezuela (…) the government has offered financial incentives to exhibitors for showing national films, including an increase in ticket prices, which had been frozen for several years, in exchange for 6.6 per cent of profits from foreign films. It has encouraged cooperation with the sector, by providing (…) an additional 6.6 per cent of receipts for Venezuelan films. All of this led to increased revenues for financing local production. Public support of national films has also led some distribution chains to invest in Venezuelan film production (King: 1990 219–20). In Argentina the government, while seeking increased access to the exhibition market, has offered to pay for the opening week’s expenses at first-run movie theatres when national films are shown (Variety 1993). In Mexico, which has long been the most statist of all Latin American countries with regards to the cinema, at one timeholding a virtual monopoly of distribution and exhibition outlets, the state exhibition sector is being privatized and the state is phasing out the screen quota, forcing Mexican cinema to sink or swim in the marketplace.
(…) Latin American countries have tended to act within the same range of possibilities: financing credits, low-interest loans, state- backed coproductions, various kinds of subsidies and subventions, advances on distribution, and coproductions between the state and private producers or between the state, private producers and foreign concerns. (…) countries have resorted to taxes on box-office receipts, which puts a primary burden on the exhibition sector, taxes on profit remittances by foreign distributors, taxes on the production sector (e.g. in Brazil there existed a mandatory ‘contribution’ for film industry development paid by producers), and even direct budgetary appropriations.
Latin American film industries have discovered, however, that even comprehensive state policies—combining restrictive and supportive policies—are insufficient to truly guarantee stability. In some cases, such as Colombia and Venezuela, among others, when filmmaking got underway the domestic market had already been divided up among foreign interests. Competing in such a market, based on a precarious cinematographic infrastructure, is virtually impossible.
FILM POLICY IN BRAZIL
The Brazilian film industry has, in the last decade, faced the most severe crisis of its history, a crisis that threatens its very existence. Never has a Latin American film industry experienced such a rapid climb and such a precipitous fall. Its experience illustrates the pitfalls of film policies throughout Latin America and may well represent a lesson to be learned by other governments (…).
In the late 1970s, it seemed that Brazilian cinema, supported by the state film agency, Embrafilme (Empresa Brasileira de Filmes), would finally take off and reach an unprecedented level of stability and prosperity.
Despite such success, the 1980s witnessed a downturn that reversed the economic growth of the previous decade. The number of theatres in the country dropped from 3,276 in 1975 to slightly over 1,500 in 1984 to less than 1,100 in 1988. In 1994, Variety reported the number of screens in the country to be only 800. The occupancy rate for all theatres dropped from 19 per cent in 1978 to a mere 12 per cent in 1984, and annual attendance per capita went from 2.6 times in 1975 to 0.8 in 1983. Attendance figures for Brazilian films dropped from the 1978 high of 60 million to less than 24 million in 1988 and has continued to plummet, as national film production declined from 102 films in 1980 to eightyfour in 1983 to less than ten in 1991 (…). (…) the crisis was perhaps less apparent in the number of films produced than in their quality. Between 1981 and 1985, hard-core porn accounted for an average of almost 73 per cent of total production, a trend which continued at least through 1988, a year in which twenty of the thirty top-drawing Brazilian films were pornographic (Jornal da Tela, March 1986:3).
On one level, of course, the crisis of Brazilian cinema in the 1980s reflected the larger crisis of the national economy in a period when the so-called economic ‘miracle’ of the 1967–73 period (…) was replaced by an economic nightmare with a 100 billion dollar foreign debt and near hyperinflation. The economic crisis forced the government to impose severe restrictions on imports, making film production costs rise dramatically and accentuating what is often called the ‘dollarization’ of the film production process. Film production costs increased rapidly at a time when the market was shrinking, thus accelerating the process of decline, and ticket prices, which have long been controlled by the government, did not keep pace with inflation, further reducing the industry’s income. High inflation rates have made filmgoing a luxury for much of the Brazilian population.
One of the major lessons learned from the situation in Brazil is that without social legitimacy a successful government policy of film industry support is impossible. Such legitimacy is not automatic; it must be earned, and without authoritarian impositions on one sector (e.g. exhibition) in order to support the corporatist interests of another. […] Although it can certainly aid and assist, the state cannot, by itself, replace the private sector and ensure the future of film industries in Latin America.
[Film: Os Bons Tempos Voltaram: Vamos Gozar Outra Vez aka The Good Times Are Here Again: Let It All Hang Out (1985), dir. Ivan Cardoso, John Herbert]