Study analyzes impact of Paulo Gustavo Law in Rio de Janeiro State

A study carried out by Fundação Getulio Vargas about the application of the Paulo Gustavo Law by the state government of Rio de Janeiro reveals that investing in culture can generate jobs, employment and income.

In 2023, the Rio de Janeiro State Secretariat for Culture and the Creative Economy (SECECRJ) was responsible for executing R$139 million of funds allocated by the federal government. According to the study, this amount boosted the state’s economy to the tune of R$852.2 million.

For every R$1 that was spent on culture, R$6.51 returned to society and the public coffers. This is because the economic activity involving culture generates “waves” that move other sectors in a domino effect. This phenomenon led to the creation of 11,526 jobs, 75.4% directly and 24.6% indirectly.

“Last year, the state government spent more on culture than ever before, all at once and in a short space of time. The Paulo Gustavo Law was very challenging, but every effort and all the overtime and sleepless nights were worth it. We managed to use the total amount earmarked by the federal government, R$139 million, holding 19 calls for proposals. Investment in the cultural and creative sector not only benefits cultural producers, but the entire economic chain in the state. This action has helped attract investment and democratize culture in Rio de Janeiro,” explains the state secretary for culture and the creative economy, Danielle Barros.

The economic chain built itself up during the execution of the 1,190 projects awarded funds in the 19 calls for proposals enabled by the Paulo Gustavo Law, given that in order to deliver the proposals, the winners had to spend money in different areas. According to the FGV study, most of the money was spent on hiring staff, artists and speakers; infrastructure; renting spaces; purchasing IT and audiovisual equipment; transportation logistics; food; accommodations; communication and marketing; administrative expenses; and taxes.

“The FGV project for SECECRJ, to support the application of the Paulo Gustavo Law in the state of Rio, included the creation of methods for assessing the management of resources and pioneering studies of the value chain in the cultural and creative sector, looking at the economic impact generated by the secretariat’s calls for proposals. The results show the sector’s readiness to respond to demands and the economic benefits of mechanisms to promote culture. By prioritizing this initiative, the state management is reinforcing its transparency and commitment to public policy. Rio de Janeiro is now the first state in the country to publicly account for the funds transferred by the federal government via the Paulo Gustavo Law,” says Luiz Gustavo Barbosa, the executive manager of FGV’s consulting arm, FGV Projetos.

It is estimated that more than 2 million people will participate in this year’s cultural projects in Rio de Janeiro State: 85.3% residents, 4.9% Brazilian day-trippers, 9.0% Brazilian tourists (staying at least one night) and 0.8% foreign tourists. 

About the Paulo Gustavo Law in the state of Rio de Janeiro

The calls for proposals encompassed different areas of the cultural sector, prioritizing the audiovisual segment, with the aim of democratizing access to resources and stimulating the production chain. They also included segments that had never been addressed exclusively before.

The calls for proposals for the audiovisual segment were designed to meet the demands of an industry that was hard hit in recent years by the pandemic. SECECRJ invited proposals in the following areas, among others: audiovisual works and spaces, training and dissemination, memory and preservation, licensing, distribution, and electronic games.

Other calls for proposals were aimed at promoting and fostering 12 different segments: urban connections, theater, dance, circus, music, visual arts, traditional culture, bands and fanfares, handicrafts, art education, comics, and diversity in dialogue.