In Defense of Brazil’s Visual Arts

Or “The government’s headache-inducing ignorance towards recognizing culture as a national economic driver.”

I started this article on the 24th of November 2024 (coincidentally my birthday), when all of the sudden my entire Instagram feed was filled with Brazilian galleries sharing a post that read “In defense of the visual arts in Brazil- the sector needs to be included in the differential scheme of the tax reform”. Those were certainly not the birthday posts, I was expecting and so I set out to find out what was going on… and here we are. Do I fully understand what happened? More or less, since tax laws are not my area of expertise. But while trying to understand, I went on a bit of a journey and decided to take you with me.

The original Instagram posts were a response to the tax reforms Brazil was undergoing. These reforms excluded the visual arts sector from the differential treatment, set in place to incentivize the creative economy.  From what I understood it happened by accident because lawmakers were not thorough enough. The tax reforms would have included a special scheme for cultural “services,” but not “products”, which would have overlooked paintings, sculptures, etc. and by doing so, threatened the existence of galleries and artists, and with it, Brazil’s art market in the global context, without even meaning to do so.  Under the new tax law, artwork prices would have risen by 27 % (Medeiros, 2024), resulting in a major setback, especially for a country that is at last receiving more recognition in the global art world.

When we talk about the importance of art, we often talk about its cultural and educational qualities and see those who treat art as a form of investment as billionaire pricks who want to continue hoarding their wealth. I want to explore art, not as a form of luxury goods for the private person or as being important for culture and education, but as a driver for the national economy. Let’s embark on a little journey and theorize about how if we worked together, business-wise, government-wise, and civilian-wise, we could propel our art market by taking advantage of the current trends, global developments, and ultimately our skills.

First, let us talk about the creative economy. The creative economy is the one moved by industries, such as design, architecture, fashion, advertising, marketing, media, music, performing arts, and cultural expressions (ArtCult, 2020). It is worth $985 billion and according to the G20 could account for 10% of the global GDP by 2030 (The Policy Circle, n.d.). It also accounts for 50 million jobs worldwide, employing more women and more people aged between 15 and 29 than any other sector (The Policy Circle, n.d.). When we look at Brazil’s creative economy, we find that it is responsible for 3.11% of Brazil’s GDP, which is more than the automotive sector. It also includes 130 thousand companies and moved R$230 billion in 2020 (Seganfredo, 2023) and is clustered around 5 states: São Paulo, Rio de Janeiro, Minas Gerais, Santa Catarina, and Parana. However, other states, such as Sergipe, Roraima, Alagoas, and Goiás have shown increasing activity and development, as well (Itaú Cultural, 2024). Besides being an economic powerhouse, the creative economy also has other social benefits, such as supporting child development, and encouraging health-promoting behaviors, among many others (Evennett, 2024).

Visual arts are especially important for our society since its effects range from being therapeutic to addressing issues such as “political corruption, social inequality, and environmental degradation”, (Melger, 2024). As if those were not reasons enough to promote visual arts, it is also full of economic potential. While the global art market “slowed down” in 2023, it is still valued at $65 billion, and it is known to be resilient, recovering not only quickly from the 2008 financial crisis but also the pandemic (Arts Economics, 2023). The art market is focused on the big three, namely the U.S., China, and the UK. The rest of the market consists of mainly European countries, while Brazil only holds 0.89% of the global art market (Act, 2024).  Of course, that is also historically motivated, since Europe was the world’s art center for an exceptionally long time before the U.S. took the title. Most of the leading countries had a long time to develop and establish themselves, which is why the main art institutions are found in the U.S. or Europe. From the big art events to the big auction houses, to the big art museums, to the big galleries, they can all be found there. This is also due to those countries’ governments understanding the economic power the art world holds. France’s VAT is 5.5%, the, U.S.’ is 7%, the UK’s is 5%, and Hong Kong has a VAT of 0%, just to give a few examples (Roesler, 2024).

The art world has an opening shaped like Brazil, and all Brazil needs to do, is to pop right in there and decide it is ready to be what it can be. Brazil is trending and it is noticeable. New galleries are opening, more Brazilian artists are being represented by big international galleries (Arts Economics, 2023), the last curator of the Venice Biennale was the Brazilian curator Adriano Pedrosa, and SP-Arte reported 5 thousand visitors more than in comparison to 2019 (Art Basel, 2023). As I am writing this article, the exhibition “Brasil! Brasil! The Birth of Modernism” is happening in London. All of that? Just the beginning.

The art scene is becoming increasingly diverse, and if Brazil has something to offer, then it is diversity, even if it still has a long way to go when it comes to equality. Black and Indigenous women continue to be the least represented and receive the worst salary within the creative economy (Itaú, 2024). However, instead of seeing this as a roadblocker , we could use it as a wake-up call and as motivation to change. If the art world seeks to diversify, then let us do so too. Let us investigate how to promote diversity, make it a reality, and support it. Let us not see it as a trend but as a development. This means, collecting more data on Black, Asian, and Indigenous representation in national galleries, auction houses, art fairs, etc., analyzing the results, and understanding how we can improve and represent this country’s demographics accurately on an international basis.

Another opportunity Brazil is presented with is the high demand for ultra-contemporary artists, meaning artists born after 1975 (Kakar, 2024). While we do not know how many artists represented by galleries belong to this category, we do know that 82% of Brazil’s galleries focus on contemporary art, meaning artists born after 1940 (Act, 2024). And since 58% of galleries only work in the primary market, and 36% work in the primary and secondary market (Act, 2024), we can at least assume that a substantial chunk of those artists are ultra-contemporary. Aditionally, ultra-contemporary art is normally more reasonably priced, which is convenient since “cheaper” artworks are currently more popular due to buyers lacking the security to commit to more expensive buys (Arts Economics, 2023). With a booming contemporary art scene, and a big section focusing on artworks that cost up to R$50.000, we have a supply for the current demand (Act, 2024). Even more so because the exchange rates makes Brazilian artworks even more affordable for foreign customers. Sadly, the bureaucracy and lengthiness of exporting goods make it nearly impossible to take advantage of this opportunity.

Another trend, Brazil might be able to exploit is the shift towards digitalization in the art market. While for example, digital events have decreased again, digitalization continues to be a trend, and Brazil, along with Taiwan, and Germany “show above-average preferences for online buying and younger collectors, with Gen Z respondents favoring dealers’ websites over buying in person at the gallery” (Arts Economics, 2023). Even with the majority of sales still happening in person at galleries (42%), and at art fairs (25%), the online channel has increased from 8% to 20%, making it a valuable sales channel that should be further explored by sellers (Act, 2024).

In addition to that, the geography of the art world is also changing, with new art hubs emerging.  Milan, Dubai, and Lagos are the new it-places and are “fostering entire creative communities, encouraging collaborations and redefining the art world's geographical boundaries” (Aurora & Athena, 2025). These places are taking advantage of their cultural richness, creating lower entry costs, and investing in infrastructure and art initiatives to boost their markets and attract new investors, something Brazil could do as well. Brazil already has so much going for it: A vibrant culture, an art scene that has survived adversity and wants to be seen, favourable export laws (even if the processes are lengthy and could be improved), a strong presence at U.S. art fairs, and a concentrated but solid national market that can be further expanded. By giving the art market a bit more attention, Brazil could see immense growth.

Just within the visual arts world, there are numerous growth opportunities. Galleries, auction houses, art dealers, museums, art fairs, and more, offer employment opportunities. And while smaller galleries employ less than bigger galleries, we see that Brazilian art galleries tend towards longevity (Act, 2024). With the right incentives, those galleries could grow and expand nationally or even internationally, leading to more employment, business, and overall economic activity. By aiding galleries to take part in international art fairs, artists can continue to succeed and bring more attention to Brazil, which in turn would bring in more investors, and attract new buyers. Especially now, with Brazil’s main export destination, the U.S., suffering under the Trump administration, it is important to attract wider international interest. Besides that exhibitions, art fairs, and museums can have huge economic impacts on cities and regions. In 2019, the three most visited exhibitions were all in Brazil, with more than 500 thousand visitors (Lawler, 2020). Imagine how these exhibitions translate into other industries, such as hospitality, gastronomy, and transport.  If the government decided to facilitate the import of art, museums could add to their collections, attracting more visitors. What if, for example Florianópolis experienced the Bilbao effect? Art can be profitable not only culturally but also economically for a community. This could lead to societal change and lower inequality if done correctly.

I believe that the time is right for Brazil, now more than ever. It is of utter importance that its players can do what they need for our country to establish itself further as a global art player and also as a flourishing creative economy within its borders.  It is necessary that Brazil’s government realizes that there is wealth in the art world, not just for individuals but also for the community. We could flourish if we embraced art as a part of our culture and our economy. Now, to circle back: the movement that inspired this article ended up being successful and the tax reform was reviewed and adjusted, showing once again the willingness of Brazil’s arts sector to stand strong.

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